How well can current assets cover current liabilities? Reviewed by Amy Drury The acid-test ratio (ATR), also commonly known as the quick ratio, measures the liquidity of a company by calculating how ...

The quick ratio, also known as the acid-test ratio, measures a company's ability to pay off its current debt. Current debt includes any liabilities coming due within a year, like accounts payable and ...

Jason Fernando is a professional investor and writer who enjoys tackling and communicating complex business and financial problems. Gordon Scott has been an active investor and technical analyst or ...

Check both net and gross expense ratios when choosing funds; discounts may be temporary. Aim for funds with low expense ratios to enhance investment returns over time. Passively managed index funds ...

Understanding how much of a company’s profits are returned to shareholders in the form of dividends depends mostly on its dividend payout ratio in finance. This ratio provides investors looking for ...

The price/earnings to growth (PEG) ratio is a metric used by investors when valuing stocks. The PEG ratio can give a more complete picture than the P/E ratio because it factors in future earnings ...

The expense ratio reflects the percentage of the fund's assets that are used to cover management costs and other administrative fees. Investors should make note of the expense ratio before purchasing ...