When you’re evaluating a potential investment, you likely look at profitability and growth, but there is one fundamental concept you must master first: liquidity. Just as a household needs enough cash ...

Elizabeth Guevara is a personal finance reporter who explains the world of business and economics and how it impacts your finances. She joined Investopedia in 2024. Investopedia / Photo Composite by ...

When you're applying for a loan, whether it's auto financing or a mortgage, the numbers matter. One important figure to understand is your loan-to-value ratio, often abbreviated as LTV. This is the ...

Past Sharpe ratio collapses in 2019, 2020, and 2022 preceded extended corrective periods. Analysts warned of further downturn for Bitcoin. Bitcoin’s risk-adjusted performance is hitting new lows, a ...

Forbes contributors publish independent expert analyses and insights. Host of the Retire Sooner podcast and CFP™ practitioner. The IRS might describe it as landing in the top tax bracket—paying a 37% ...

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 ...

Are Americans drinking less? Alcohol sales and Gallup surveys suggest shifting attitudes among Gen-Z drinkers; restaurant and bar owners are, if not panicked, at least left to wonder how to cater to ...

The Shiller P/E ratio passed a mark on Monday it last hit during the dot-com bubble. The stock-market indicator peaked before the S&P 500 crashed 49% in the early 2000s. AJ Bell's Russ Mould said ...

Check both net and gross expense ratios when choosing funds; discounts may be temporary. Aim for funds with low expense ratios to enhance investment returns over time. Passively managed index funds ...

I’ve used about 30 different drip coffee makers, and while companies have made great strides in the quality of the coffee these machines can produce, they’ve made, let’s say, fewer strides in their ...

The state and local tax deduction, a write-off that primarily benefits higher-income Americans living in high-tax areas, was one of the most disputed provisions of Trump’s tax-and-spend bill. The law ...

After years of paying into the Social Security system, many seniors are surprised to learn that the benefits they receive after retirement may be subject to federal income tax. This is generally ...