Ratio analysis is one of the cornerstones of the financial used by investors and companies alike to judge the effectiveness of business. There are dozens of ratios used to examine profitability, ...

Insurance companies must save a certain percentage of the premiums they receive to pay for claims. The amount set aside, the reserves, must be enough should a large group of policyholders experience a ...

Banks and investors will typically use financial ratios to measure the performance of your business. They may also be used to gain insight on a company’s financial statements. Regardless if you’re a ...

Opinions expressed by Entrepreneur contributors are their own. Everything in business is relative. The numbers for your profits, sales, and net worth need to be compared with other components of your ...

There’s no universal safe or danger level. Ideal current ratios vary by industry. A current ratio of 1.0 means the company has $1 in current assets for every $1 in current liabilities. A ratio below 1 ...

Life insurers, whose capital buffers shrank during 2008's downturn, emerged from 2009 with a rebound in capital. The reasons? Regulatory changes and a climbing equities market, according to Moody's ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...