I have discussed horizontal and vertical techniques to analyze a set of financial statements. Another method to analyze financial statement information involves the use of ratios....
There are hundreds of accounting and financial ratio formulas. This post contains the formulas needed to calculate many of the “most common accounting ratios” specifically, as...
DIVIDEND PAYOUT RATIO – This ratio is computed by dividing total cash dividends for the year by the net income for the year. It’s simply the...