Financial ratios are the most powerful tool for investors, business owners, and managers alike to measure an organization's performance. Knowing how to calculate and analyze them is a crucial skill that every professional should possess, especially those who want to make informed decisions that direc...
How to Calculate a Gearing Ratio The most comprehensive ratio is the debt-to-equity gearing formula as this takes all forms of debt – short-term, long-term and overdrafts – and divides it by the shareholders' equity. The formula is: (Long-term debt + short-term debt + bank overdraft...
Understand the debt-to-income ratio and its significance in personal finance. Learn how to calculate your debt-to-income ratio and why lenders use it.
Method 1 – Using GCD Function to Calculate Ratio in Excel In Excel, there is no direct function for calculating the ratio. But we can create formulas to calculate ratios using other helpful Excel functions. One of the functions that we can use to calculate ratios is theGCD function. The t...
Learn how to calculate your debt-to-income ratio. Lenders consider DTI when assessing your ability to repay a loan.
Learn how to determine and calculate the equity in your home and your loan-to-value ratio (LTV) before considering refinancing or borrowing from your home's equity.
If your DTI ratio is on the low end, you may be able to handle more credit, such as a mortgage or personal loan. But if it’s higher, you may not have the financial bandwidth to take on more debt. How to calculate your debt-to-income ratio To calculate your DTI ratio, divide you...
Now that you know how to calculate your loan-to-value and combined loan-to-value ratios and how you can impact them, you can make more informed choices to help you reach your financial goals, whether you choose to borrow from the equity in your home, refinance or simply continue to pay...
When you apply for a loan or consult a financial expert, you might hear the term debt-to-income ratio, or DTI ratio for short. But what does debt-to-income ratio mean? And why does it matter? Here’s some helpful information about DTI ratios, including how to calculate your own ratio...
EPS is a financial ratio, which divides net earnings available to common shareholders by the average outstanding shares over a certain period of time.