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 ...

Financial ratios are tools used to assess the relative strength of companies by performing simple calculations on items on income statements, balance sheets and cash flow statements. Ratios measure ...

The Treynor ratio is a tool in portfolio analysis that helps investors assess how well a portfolio compensates them for taking on market risk, also known as systematic risk. This portfolio ratio shows ...

Liquidity ratios are key financial ratios used by internal and external analysts to gauge a company's liquidity, which represents its capacity to pay its existing short-term liabilities if it needs to ...

Q: The most common way I hear analysts value stocks is with the price-to-earnings ratio. How useful is this, and what other metrics are worth considering? The price-to-earnings (P/E) ratio is ...

The artificial intelligence (AI) industry is growing rapidly, and investors are looking for ways to gain exposure to this market. One way to do this is through ETFs that invest in AI. This article ...

Ratio analysis assesses company performance using financial ratios. ITW improved profit margins and FCF through strategic alignment. ITW's stock outperformed S&P 500 over a decade, showing strategic ...

What is a good return for your portfolio? If a bond portfolio generated a 4% return over the past year, it could be considered a pretty decent return. However, investors who prioritized high-growth ...

Today, I cover AAII’s strategy that focuses on firms with a low price-to-sales ratio relative to their historical average. Because revenue-based measures like the price-to-sales ratio are used less ...