Day: February 1, 2024

Price-Sales Ratio (P/S)

The price-sales (P/S) ratio is a valuation ratio that compares a company’s current share price to its revenues.

Earnings Yield

The earnings yield is a valuation ratio that compares a company’s current share price earnings with its earnings per share. It is the inverse of the price-earnings (P/E) ratio.

Free Cash Flow Yield

The free cash flow yield is a valuation ratio that compares a company’s current share price earnings with its free cash flow per share.

Times Interest Earned

Times Interest Earned, also known as the interest coverage ratio, is a solvency ratio that compares the operating profit with the interest expense of the current reporting period.

Debt to Equity Ratio

The debt to equity ratio is a solvency ratio that shows the extent to which a company finances its assets with debt or equity.

Debt to Assets Ratio

The debt to assets ratio is a solvency ratio that gives an idea about whether a company finances its assets primarily with debt or equity.

Assets to Equity Ratio

The assets to equity ratio is a solvency ratio that gives an idea about whether a company finances its assets and operations more by issuing debt or equity.

Working Capital

Working capital is a liquidity measure that describes how much more current assets a company owns compared to its current liabilities.