The retention ratio measures the percentage of a company’s earnings that are reinvested rather than distributed as dividends.

A company's financial statements — balance sheet, income, and cash flow statements —are a key source of data for analyzing the investment value of its stock.

Generally speaking, your return on invested capital, or ROIC, refers to the profits you receive relative to the money you've invested.

The Sharpe Ratio is a key metric for analysing risk-adjusted returns in investments. It helps investors assess potential ...

Key financial ratios you must look at before making investment Stock investing requires careful analysis of financial data to find out the company's true worth.

Calculation To calculate a return on assets ratio, first find the figures for total assets on the current and previous year's balance sheets.

Learn about Return on Assets (ROA), how to calculate it, what a good ROA is, and why it's crucial for evaluating company profitability and efficiency.

A cash flow return on investment (CFROI) is a valuation metric that acts as a proxy for a company's economic return.

Learn about Return on Equity (ROE), a crucial financial ratio for measuring a company's profitability and how effectively it generates profits from shareholders' investments.

Invested capital typically refers to a combination of shareholders' equity and long-term debt, both of which can be found on the balance sheet. Shareholders' equity is generally the last item ...