Businesses often use profitability ratios to gauge their performance against industry benchmarks or competitors. Calculating ...

Root Inc.’s ROOT profitability is underpinned by its combined ratio, a key measure of underwriting performance. A combined ratio — defined as sum of loss ratio and expense ratio — below 100% signals ...

Learn how to calculate the variable cost ratio to balance production costs and revenues. Understand its role in optimizing profit margins and business decision-making.

Liquidity ratios are tools that show how well an organization can meet its short-term obligations, like rent, payroll, and immediate operating expenses. In the for-profit world, these ratios help ...