Learn what active risk is and how to calculate it. Understand the methods to evaluate active risk in portfolios and explore examples of funds outperforming benchmarks.

Percentage and Ratio are two of the most fundamental concepts in Quantitative Aptitude and form the backbone of topics asked in bank exams, insurance, and other competitive tests. A strong command ...

The Premier League has introduced a new set of financial rules, which will replace the existing Profitability and Sustainability Rules (PSR) from the 2026/27 season. Developed through extensive ...

The market cap to sales ratio shows how much investors pay in share price for each unit of sales a stock generates. A lower ratio may indicate an undervalued stock, while a higher ratio suggests ...

There’s no universal safe or danger level. Ideal current ratios vary by industry. A current ratio of 1.0 means the company has $1 in current assets for every $1 in current liabilities. A ratio below 1 ...

Farran Powell is the managing editor of investing at Forbes Advisor. She was previously the assistant managing editor of investing at U.S. News & World Report. Her work has appeared in numerous ...

Recent data shows homes sold for 99.4% of asking price, indicating strong buyer leverage. The sale-to-list ratio, calculated by dividing selling price by asking price, gauges negotiation power. A ...

Debt-to-income ratio (DTI) is one of the factors lenders use to determine personal loan approval. Here’s what you need to know about the debt-to-income ratio for a personal loan, how to calculate your ...

Earnings yields are calculated as earnings per share divided by share price. Earnings yield are best used in comparisons; a higher earnings yield is generally more favorable. Earnings yields can be an ...

The overhead ratio measures how much of a company's total revenue is spent on indirect costs. This metric is useful for identifying areas where costs can be reduced to improve profitability. Analyzing ...