Jaynell

Price-to-Book (PB) Ratio: Meaning, Formula, and Example.

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Price-to-Book Ratio: Meaning and Formula What is book value of equity? The book value of equity is the portion of a company’s assets that are owned by shareholders. This figure is calculated by subtracting the company’s liabilities from its total assets. The book value of equity can be used to measure the financial health of … Read more

What Is an Alternative Minimum Tax (AMT)?

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The Alternative Minimum Tax (AMT) is a tax that is imposed on taxpayers who have certain types of income that are not subject to the regular income tax. The AMT is designed to ensure that these taxpayers pay at least a minimum amount of tax. The AMT is imposed at a rate of 26% on … Read more

The cash ratio is a financial ratio that measures a company’s ability to pay its short-term liabilities with its cash and cash equivalents.

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. What is the Cash Ratio? The Cash Ratio is a financial ratio that measures a company’s ability to pay its short-term obligations with its liquid assets. Does cash ratio include inventory? No, the cash ratio does not include inventory. The cash ratio is a liquidity ratio that measures a company’s ability to pay its … Read more