What's it: The cash ratio is a financial ratio to measure a company's ability to meet its short-term liabilities. It is the most

# Financial Ratio

## Cash Conversion Cycle: How it Works, Calculation and Interpretation

What's it: The cash conversion cycle measures how long, in days, it took a company to collect cash since the money was spent on buying raw

## Debt-to-Assets Ratio: Calculation and Interpretation

What's it: The debt-to-assets ratio is a leverage ratio to measure the extent to which a company depends on debt to finance its assets. We

## Debt-to-Capital Ratio: How to Calculate and Interpret

What's it: The debt-to-capital ratio is a leverage ratio calculated by dividing the total debt by the company's total capital. Total capital

## Debt-to-Equity Ratio: Calculation and Interpretation

What's it: The debt-to-equity ratio is a leverage ratio by compares the relative proportions of a company's capital structure. Specifically, it

## Assets-to-Equity Ratio: Calculation and Interpretation

What's it: The asset-to-equity ratio is a financial ratio indicating the extent to which a company's assets are financed through

## Interest Coverage Ratio: How to Calculate and Interpret it

What's it: The interest coverage ratio is a financial ratio to measure a company's ability to pay interest expense using the profit it

## Return on Equity (ROE): Calculation and Interpretation

What's it: Return on equity (ROE) is a profitability ratio to measure how high the return is on the invested equity capital. We get it

## Operating Profit Margin: Formula, Calculation and Interpretation

What's it: Operating profit margin is a profitability ratio to measure the percentage of profit a company generates from its core

## Gross Profit Margin: Formula, Calculation, and Interpretation

What's it: Gross profit margin or gross margin is a financial ratio to measure a company's profitability, calculated by dividing gross

## EBITDA Margin: Formula, Calculation, and Interpretation

What's it: EBITDA margin is a profitability ratio to measure how much a company profits from recorded revenue after adjusting for