Commissions do not affect our editors' opinions or evaluations. The price-to-earnings ratio, or P/E ratio, helps you compare the price of a company’s stock to the earnings the company generates.

Financial ratios are useful tools for investors to better analyze financial results and trends over time. These ratios can also be used to provide key indicators of organizational performance ...

Andrew Brookes/ Getty Images The acid-test ratio (ATR), also commonly known as the quick ratio, measures the liquidity of a company by calculating how well current assets can cover current ...