The gearing ratio is an indicator of the financial risk associated with a company. If a company has too much debt, it has the potential to fall intofinancial distress. Remember: A high gearing ratio shows a high proportion of debt to equity, while a low gearing ratio shows the opposite. ...
A debt ratio, also called a “debt-to-income (DTI) ratio,” can be used to describe the financial health of individuals, businesses, or governments. A company’s debt ratio tells the amount of leverage it’s using by comparing its debt and assets. It is calculated by dividingtotal liabil...
Here are the financial metrics to monitor and track the health of your business and your bank account: Current Ratio The Current Ratio is a liquidity metric used to determine a company's ability to cover its short-term obligations with its short-term assets. Monitoring the Current Ratio ...
Find out what the price to book ratio is, how it's calculated, and why you should know about this often misunderstood metric. Learn everything you need to know here!
Among SaaS metrics, the quick ratio is quite insightful. As much as you love to see your company's growth rate go through the roof, you also want to know how it is happening - because of new revenue or low churn - and the quick ratio gives you a peek into this. Like we discussed...
This can also be expressed as a revenue to cost ratio of 4:1. This simple formula can be helpful to get a quick high-level overview of marketing returns. However, if you want to identify specific marketing activities that drive more results, consider tracking ROI at campaign level. In ...
Using the inputs (for example, a deficient credit score or an average score with a low debt-to-income ratio and a smaller loan), the decision table will return the appropriate risk level for the applicant. This can now be used in a business process to determine the next steps as indicat...
If the calculation has a negative ROI percentage, that means the business -- or metric being measured -- owes more money than what is being earned. In short, if the percentage is positive, the returns exceed the total cost. If the percentage is negative, the investment is generating a ...
Profitability ratios, such as gross profit margin, operating profit margin, and net profit margin, are included to assess the company’s ability to generate profits from its operations. Liquidity ratios, such as current ratio and quick ratio, evaluate the company’s short-term liquidity and abilit...
Daily active user to monthly active user ratiois a measure of the frequency with which users engage with a product. The ratio represents the portion of users that engage with a product or service every single day. It is often abbreviated as DAU/MAU.On-time project deliverytracks the rate of...