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 ...

The article discusses leverage ratios such as debt to assets, debt to equity, debt to EBITDA, and debt to free cash flow, as well as the interest coverage ratio. Using company examples, I explain ...

ICR measures if a company can cover its debt interest; calculate by dividing EBIT by interest expense. An ICR under 1.0 signals financial trouble; analysts prefer a minimum ICR of 2.0. For investing, ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

We often judge a company on the basis of its sales and earnings. These, however, may not be enough. Sometimes, a stock gets a boost if these numbers climb year over year or surpass estimates in a ...

U.S. equities surged to fresh record highs as renewed optimism over trade negotiations between Washington and Beijing lifted investor sentiment. The Dow Jones Industrial Average climbed 337.47 points, ...

The total-debt-to-total-assets ratio is one of many financial metrics used to measure a company’s performance. In this case, the ratio shows how much of a company’s operations are funded by debt.

We often judge a company based on its sales and earnings. These metrics, however, may not be sufficient on their own. A stock might get a boost if these figures rise year over year or surpass ...