Combined Ratio (Insurance)
Computes an insurer's combined ratio: the sum of the loss ratio and the expense ratio. It's the central measure of an insurance operation's technical profitability — below one hundred percent, the insurer had an underwriting profit, making money on operations alone, before investments. Above one hundred percent, it had a technical loss and relied on investment income to finish in the black. Enter the loss ratio and the expense ratio.
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Combined Ratio (Insurance)
Computes an insurer's combined ratio: the sum of the loss ratio and the expense ratio. It's the central measure of an insurance operation's technical profitability — below one hundred percent, the insurer had an underwriting profit, making money on operations alone, before investments. Above one hundred percent, it had a technical loss and relied on investment income to finish in the black. Enter the loss ratio and the expense ratio.
Does the insurer make money insuring?
An insurer has two ways to profit: from the insurance operation itself and from investing the money it holds between the premium and the claim. The combined ratio isolates the first, the harder one. It adds up everything that goes out the operation's door, claims plus expenses, and compares it with earned premiums.
The hundred percent line is the watershed. Below it, the insurer had an underwriting profit: it made money just from insuring, before investing a single cent. Above it, it had a technical loss and needed investment income to make up for it. That's why the combined ratio is the first thing analysts look at in an insurer's statement.
Enter the loss ratio (how much of premiums became claim payments) and the expense ratio (the cost of operating). The tool adds the two and indicates whether there was a technical profit or loss. A combined ratio consistently below one hundred is the hallmark of a well-run insurer.
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Burke Ratio
Computes the Burke ratio: the excess return over the risk-free rate divided by the square root of the sum of squared drawdowns. Unlike the Sharpe ratio, which penalizes all volatility, Burke focuses only on the falls, and by squaring each drawdown it punishes deep falls more than shallow ones. It's one of the tail-risk-adjusted performance metrics. Enter the portfolio return, the risk-free rate and the list of drawdowns in percent.
Tail Ratio
Computes the tail ratio of a return series: the absolute value of the 95th percentile divided by that of the 5th percentile. It compares the size of extreme gains with extreme losses — a tail ratio above one means the right tail (gains) is larger than the left (losses), a desirable asymmetric profile. Below one, extreme losses dominate. It's a quick snapshot of the asymmetry at the ends of the distribution. Enter the list of returns separated by commas.
Down Capture Ratio
Computes a portfolio's down capture ratio: how much it fell alongside the benchmark during periods when the index dropped, by the geometric compounded method. Here, less is better — a value below one hundred percent means the portfolio lost less than the market in declines, a sign of good protection. A negative value means the portfolio rose while the market fell. Together with up capture, it describes the manager's asymmetric profile. Enter the lists of portfolio and benchmark returns.
Up Capture Ratio
Computes a portfolio's up capture ratio: how much it kept pace with the benchmark during periods when the index rose, using the geometric compounded method (Morningstar standard). A value above one hundred percent means the portfolio captured more than the market's rise in good months; below, that it lagged on the way up. It's one half of the pair with down capture, which measures behavior on the way down. Enter the lists of portfolio and benchmark returns, in the same order.
Operating Expense Ratio (Real Estate)
Computes a property's operating expense ratio: operating expenses divided by gross operating income, as a percentage. It measures how much of the rental income is consumed by the costs of operating the property, such as maintenance, management, taxes and insurance, not counting financing. The lower it is, the more efficient the property; a very low value may signal deferred maintenance. It's a key indicator in income-property analysis. Enter the operating expenses and the gross operating income.
The results provided by this tool are for general informational and educational purposes only and do not constitute professional, financial, medical, legal, tax or accounting advice. Always confirm important decisions with a qualified professional and official sources.