GCD stands for Greatest Common Divisor. It is also called HCF (Highest Common Factor). In simple words, it is the greatest number that can divide a particular set of numbers. For example, the Greatest ...

The defensive interval ratio (DIR) is a financial metric that can help investors assess a company's ability to meet its short-term operating expenses using its liquid assets. Also known as the basic ...

The debt-service coverage ratio (DSCR) measures the cash flow available to pay current debt obligations. Many lenders set minimum DSCR requirements for loan approval.

Lorraine Roberte is an insurance writer for Investopedia. As a personal finance writer, her expertise includes money management and insurance-related topics. She has written hundreds of reviews of ...

The Treynor ratio is a tool in portfolio analysis that helps investors assess how well a portfolio compensates them for taking on market risk, also known as systematic risk. This portfolio ratio shows ...

Before approving you for new credit, lenders will likely first look at your credit report, your credit score and something called your debt-to-income ratio — commonly referred to as DTI. While all ...

A higher Sortino ratio can indicate a good return relative to the risk taken. The Sortino ratio focuses on downside volatility, while the Sharpe ratio considers both upside and downside volatility in ...

Inventory turnover is an indicator of a company’s revenue efficiency. It is the ratio defining how many times the inventory was sold and replaced in a given period of time. The inventory turnover ...

One major factor lenders consider when reviewing your mortgage application is your debt-to-income ratio (DTI). Essentially, how much of your paycheck goes toward paying down debts. A lower DTI tells ...