First, a warning that this is about to get math-heavy, but if you want to calculate it, there are four main types of solvency ratios that lenders look at. 1. Interest Coverage Ratio ...

Debt can be scary. It’s not uncommon to have some form of debt in life, be it student loans, medical bills, personal loans, or credit card debt. Figuring out your debt-to-income ratio can help you see ...

Doing the math Better yet, here's a calculator that you can use to enter all of your relevant business information, which will calculate all 12 of these financial ratios for you: ...

Calculating compression ratio is pretty straightforward, but involves a little math. So, grab your calculator and let’s crunch some numbers.

The dividend payout ratio can be a helpful metric for comparing dividend stocks. This ratio represents the amount of net income that a company pays out to shareholders in the form of dividends ...

In the following article, you'll learn about two useful balance sheet ratios: the debt ratio and the equity multiplier, and you'll learn the relationship between the two and how to calculate one ...

Debt-to-income ratio shows how your debt stacks up against your income. Lenders use DTI to assess your ability to repay a loan. To manually calculate DTI, divide your total monthly debt payments by ...

Credit utilization ratio is the balance on credit cards compared with available total credit. Use our calculator to check yours and see how it affects your score.

Recent data shows homes sold for 99.4% of asking price, indicating strong buyer leverage. The sale-to-list ratio, calculated by dividing selling price by asking price, gauges negotiation power. A ...

Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using figures ...

The article How to Calculate Profitability Ratios for Banks originally appeared on Fool.com. The Motley Fool owns shares of and recommends Wells Fargo.