The Sortino ratio uses three inputs for its formula. The numerator is the difference between a portfolio's return and the risk-free rate of return. You can use a portfolio's actual or expected return.
The Sharpe ratio is one way to capture this risk-versus-reward detail and give investors extra insight into their assets' performance. Some investors use an index fund as a benchmark and attempt ...
Plug the figures into the equation, and solve for the PEG ratio number. As with any ratio, the accuracy of the PEG ratio depends on the inputs used. When considering a company's PEG ratio from a ...
Acid-Test Ratio Formula The acid-test ratio, also known as the quick ratio, is a liquidity ratio that is calculated by dividing a company’s most liquid assets by its current liabilities. The ...
An expense ratio is a fee (in the form of a percentage of one's investment) that an investor pays annually for access to an ETF or mutual fund. Expense ratios, expressed as percentages ...
The debt-to-equity ratio is a financial equation that measures how much debt a company has relative to its shareholders' equity. It can signal to investors whether the company leans more heavily ...
Leverage ratios are metrics that express how much of a company's operations or assets are financed with borrowed money. Businesses cost a lot of money to run, and that money has to come from ...
Andrew Brookes/ Getty Images The acid-test ratio (ATR), also commonly known as the quick ratio, measures the liquidity of a company by calculating how well current assets can cover current ...