Operational performance ratios measure how different aspects of a company's finances are performing. The fixed-asset turnover ratio, operating cycle ratio and revenue per employee ratio each provide a ...

Learn how the operating cash flow ratio, a key liquidity measure, helps assess a company's ability to cover liabilities with ...

Return-on-equity (ROE) is the correct profit metric to evaluate the performance of a business. However, the primary emphasis on financial ratio analysis must be on operating performance. The “advanced ...

Business accountants measure financial performance and success in myriad ways, including the percentage or ratio known as "operating margin." Operating margin helps accountants and business managers ...

“Cash is King” is more than just a cliché; it is a fundamental truth. A company can report billions in profit on its income statement, yet if it runs out of the actual money needed to pay its short ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Watching Washington, February 2019: Sizzle sells product. No wonder the sizzle of ever-lower operating ratios is leading to remarkably higher railroad share prices. But as operating ratios—operating ...

The soft freight scenario in the United States is a major headwind to railroad operators as a bulk of its revenues is derived from freight. The dismal scenario with respect to rail freight traffic in ...