Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating these ratios involves a straightforward process, typically using figures ...

One of the most useful metrics in assessing a company's profitability is earnings per share, and it can be calculated from information found on that company's balance sheet and income statement, two ...

A ratio of debt to equity is calculated by dividing total debt by the amount of shareholders' equity, found near the bottom ...

To determine the profitability of banks, simply looking at the earnings per share isn't quite enough. It's also important to know how efficiently a bank is using its assets and equity to generate ...

If you're considering investing in Apple (AAPL), you can start evaluating the company through its balance sheet, which presents a picture of its financial situation at a certain point in time. The ...

Even though the income statement normally attracts the most attention from investors, the balance sheet is the true starting point for understanding a company’s financial position. It shows how much a ...

When your company makes a profit, you can issue a dividend to shareholders or keep the money. The profits you keep are called retained earnings. You can use retained earnings to fund working capital, ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Khadija Khartit is a strategy, investment, ...

According to the CFA Institute, a balance sheet-based accruals ratio is "the difference between net operating assets at the end and the beginning of the period compared to the average net operating ...

Written by How to Calculate Earnings Per Share on a Balance Sheet for The Motley Fool -> For example, if a company earned $10 million in 2000 and $20 million in 2010, it may appear that profitability ...