A P/S (or price-to-sales) ratio is a valuation tool is used by investors to determine how a company’s share price compares to its annual revenue. A company’s P/S ratio can also be thought of ...

The price-to-sales ratio was feted in the mid 1990s, and vilified after the dotcom crash. Tim Bennett explains what it is, how it works and when investors should use it. Sometimes called the 'king ...

The price-to-earnings (P/E) ratio is often the go-to metric due to its simplicity and ease of use. However, the price-to-sales (P/S) ratio is more useful for evaluating stocks of companies that ...

This metric is usually expressed as a percentage of sales and is also known as the gross margin ratio. A typical profit margin falls between 5% and 10% but it varies widely by industry.

The long-term D/E ratio focuses on riskier long-term debt by using its value instead of that of total liabilities in the numerator of the standard formula: Long-term D/E ratio = Long-term debt ÷ ...

Since the quick ratio doesn’t include inventory in its calculation, it may be a better liquidity indicator in some situations. Similarly, not all companies have stable sales over the course of ...