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 ...

Lorraine Roberte is an insurance writer for Investopedia. As a personal finance writer, her expertise includes money management and insurance-related topics. She has written hundreds of reviews of ...

Your tax ratio – also called a tax rate – determines the amount of personal income tax you pay each year. Information you give your employer determines how much comes out each pay period. Information ...

When it comes to evaluating stocks, savvy investors know that earnings can tell only part of the story, and sometimes a ...

When it comes to income investing, it’s good to know the dividend payout ratio formula. It can give you insight into dividend safety. When it comes to dividend stocks, this ratio is always on my ...

The three inputs into a Sharpe ratio calculation are your expected return, the risk-free rate and the standard deviation.

The expense recovery ratio, also known as the cost recovery ratio, is a financial operations measurement tool used to gauge how well an investment of any kind has recouped its costs. The expense ...

The quick ratio, also known as the acid-test ratio, measures a company's ability to pay off its current debt. Current debt includes any liabilities coming due within a year, like accounts payable and ...

A company's dividend payout ratio offers key insights into the business for investors. Here's how to calculate it.

Financial metrics such as P/E ratios, PEG ratios and others are tools available in the investor's toolbox. Financial metrics are dynamic and relative and should never be utilized in a vacuum. When is ...

The financial authorities are expanding the liquidity ratio regulation—which previously applied only to comprehensive financial investment business en ...