Cash ratio formula, interpretation and examples
The cash ratio formula is one of the ratios used to measure the liquidity of a company. In finance, liquidity …
Finance
Solvency Ratio Formula and Example
The solvency ratio formula guides how to measure a firm’s ability to meet its long-term debt obligations. This metric is …
Common vs preferred stock differences and similarities
We will discuss the differences between common vs preferred stock in terms of their characteristics, types, and their examples. The …
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Quick ratio vs current ratio differences and similarities
The quick ratio and current ratio are slightly different. Among these two ratios, the quick ratio is known to be …
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What is negative equity?
If you have ever taken a loan, you might have heard the word negative equity and positive equity before now …
Formula of interest coverage ratio (ICR) and example
The formula of interest coverage ratio is a simple equation like the debt to equity ratio formula, used in the …
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What are mid cap stocks? List and examples
Mid cap stocks tend to be issued by businesses that have established some level of consistency in their industry by …
Current ratio formula, calculation and examples
The current ratio formula and calculation is an example of liquidity ratios used to determine a company’s ability to pay …
What are small cap stocks? List and examples
Small cap stocks are part of the many different kinds of stocks. Additional stock types include blue chip, treasury, penny, …
Debt to equity ratio formula and interpretation
The debt to equity ratio formula is an important metric used in corporate finance. The interpretation of the debt to …
