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Approximate Q

An improved version of Q ratio (Tobin's Q) which relates the market value of a company plus the liquidating value...

Activity Ratio

A financial ratio that measures the speed with which various asset accounts are (or can be) converted into sales (accrual...

5 Cs

An expert system which analyzes five key factors affecting the credit decision (i.e., whether to extend credit/ lend or not)....

RONA

It stands for return on net assets; a profitability ratio in which only interest-bearing debt along with equity are taken...

Return on Net Assets

A profitability ratio in which only interest-bearing debt along with equity are taken into account in calculation. This ratio (RONA,...

Risk-Free Rate

The rate of return on a specific risk-free asset. In practice, analysts use government bond rates as a proxy for...

Retention Ratio

A financial ratio that relates retained earnings to profits as illustrated in the following: Or also: Retention ratio = 1-...

Capitalization Ratio

A financial ratio that relates total debt to total capitalization (capital structure). It tells about how much the company is...

DPS

It stands for dividends per share; a financial ratio that relates cash dividends to total shares outstanding. That is: DPS...

Dilution

A decrease in the equity of a share of stock after a company issues additional shares, whether in raising more...