Ratio Analysis

Ratios used in financial analysis compare companies to or within an industry. We have listed groups of commonly used ratios with links to examples, explanations, and formulas. Continue reading

Finance Homework Help

We get alot of finance and MBA students searching for homework help at our site. Whether the textbook is confusing or the case notes are incomplete or they just need some extra help, we have a bunch of resources to Continue reading

Variable Costs

Variable costs are expenses that increase or decrease as a direct result of increases or decreases in sales or production volume. Learn more about variable cost in this tutorial. Continue reading

Fixed Costs

Fixed costs are defined as any cost or expense that does not vary with changes in the level of business activities like sales or production. Learn more about fixed cost in this tutorial. Continue reading

TIE Ratio

The TIE Ratio shows the ability to pay interest charges out of earnings. (TIE stands for times interest earned.) This interactive tutorial walks you through the calculations, including where to find the numbers on the financial statements. Continue reading

Balance Sheet

Learn about the structure and contents of a balance sheet by examining one for the fictitious company Bogus Manufacturing, Inc. Continue reading

Ratio Analysis: Concept and Limitations

Dear Professor Cram: Can you explain to me the concept of ratio analysis and the limitations of ratio analysis? Thanks! Ken S., Hong Kong Thanks for your question, Ken. In Finance, ratio analysis is generally used to compare the performance Continue reading