What's it: DuPont analysis is an approach to breaking down the ratio of return on equity (ROE) into several specific ratios. It helps us know

# Financial Ratio

## Fixed Assets Turnover Ratio: How to Calculate and Interpret

What's it: The fixed-asset-turnover ratio is a financial ratio to measure how productively and efficiently a company uses its fixed

## Types of Financial Ratios: Their Analysis and Interpretation

Financial ratios are important metrics for analyzing a company's finances. In rating or stock analyst reports, we will find various ratios.

## Fixed Charge Coverage Ratio: Calculation and Interpretation

What's it: The fixed charge coverage ratio is a financial ratio to measure how well a company can cover interest and lease payments.

## Pretax Profit Margin: Its Calculation and Interpretation

What's it: Pretax profit margin is a profitability ratio to measure how successfully a company converts revenue into profit before

## Profitability Ratio: Formulas, Types, and Examples

What's it: Profitability ratio is a financial ratio to measure the company's ability to generate profit. Profitability ratios are a

## Asset Turnover Ratio: Calculation and Interpretation

What's it: The asset turnover ratio is a financial ratio to measure the overall efficiency of business operations. It shows how well

## Defensive Interval Ratio: Importance, Calculation, and Interpretation

What's it: The defensive interval ratio is a financial ratio to measure how long a company can continue to meet daily expenses using

## Cash Ratio: Formula, Calculation, and Interpretation

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

## 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