The earnings per share formula is useful for valuing stocks. It’s a key part of the widely-used price-to-earnings ratio. And by gaining a better understanding of these concepts, you can make better ...

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 ...

A leverage ratio measures the level of debt being used by a business. There are several different types of leverage ratios, including equity multiplier, debt-to-equity (D/E) ratio, and degree of ...

The market risk premium is an essential part of investment planning. Here’s what you need to know. There are safe things you can do with your money. Now, when it comes to finance, “safe” is a relative ...

Learn what an amortization schedule is, its importance for loans and intangible assets, and how to calculate it using a simple formula.

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Dr. Melody Bell is a personal finance expert, entrepreneur, educator, and researcher. Melody ...

Not only does Excel keep information organized in spreadsheets, it can also save you from manually typing data for each cell separately. Formulas compute information directly in Excel and ...

Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our ...

ROA measures profit relative to a company's total assets; higher ROA indicates better financial efficiency. ROA is calculated with either net income and total assets or with net profit margin and ...