Financial ratios are powerful tools to help summarize financial statements and the health of a company. Browse Investopedia’s expert-written library to learn more.

Financial risk ratios help assess a company's risk by evaluating financial health. High debt levels can limit a company's growth opportunities and increase risk. Key ratios include interest coverage, ...

You’ve probably heard investing professionals talk about risk-adjusted returns. This is a way of measuring the performance of an investment that factors in risk—specifically, the extra risk required ...

Learn about six essential financial ratios that provide you with key insights into company performance and help guide you to make better investment decisions.

Mutual fund risk ratios help investors assess a scheme beyond past returns. Key measures include alpha, beta, R-squared, ...

Investors who use absolute valuations set a limit on the valuation ratio they will use. Such investors may insist on a ...

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