An accounting ratio compares two line items in a company’s financial statements that are made up of its income statement, balance sheet, and cash flow statement. These ratios can be used to ...

Accounting gives you a sixth sense–one that can help you determine whether your business will survive or fail.In this class, you'll learn the basics of accounting, and uncover its origins.

Distortion of Ratio Analysis Due to Accounting Differences. Ratio analysis is one of the cornerstones of the financial used by investors and companies alike to judge the effectiveness of business ...

Insurance Accounting Terms and Combined Ratio. Insurance companies must save a certain percentage of the premiums they receive to pay for claims. The amount set aside, the reserves, must be enough ...

Retained earnings are a firm’s cumulative net earnings or profit after accounting for dividend payments. They’re also referred to as the earnings surplus.

Jane A. Ou, Stephen H. Penman, Accounting Measurement, Price-Earnings Ratio, and the Information Content of Security Prices, Journal of Accounting Research, Vol. 27, Current Studies on The Information ...

The book-to-market ratio is a function of current and lagged changes in market value. The coefficients of correlations between book and market values decline smoothly toward zero as the lag increases.

Direct Line’s solvency ratio, which reflects an insurer’s ability to withstand unexpected shocks from higher liabilities or falling asset values, improved over the first half of the year to ...