Operational performance ratios measure how different aspects of a company's finances are performing. The fixed-asset turnover ratio, operating cycle ratio and revenue per employee ratio each provide a ...

Managers and investors both use financial ratios to evaluate business performance. Financial ratios convert financial information into a standardized format that makes it easy for users to evaluate ...

Return-on-equity (ROE) is the correct profit metric to evaluate the performance of a business. However, the primary emphasis on financial ratio analysis must be on operating performance. The “advanced ...

Profitability ratios are financial metrics used to evaluate a business's degree of success in generating a profit.

How can successful business owners determine if their company is financially healthy or heading toward trouble? Financial statements are a source of information but interpreting them on their own can ...

“Cash is King” is more than just a cliché; it is a fundamental truth. A company can report billions in profit on its income statement, yet if it runs out of the actual money needed to pay its short ...

Union Pacific UNP set an all-time record for its operating ratio in the second quarter despite lower freight volumes and a decline in freight revenue. The western U.S. railroad reported an operating ...