Financial Theory Articles

  1. Financial Models You Can Create With Excel

    The relatively modest amount of time it takes to build these models can pay for itself by leading you to better investment ...
  2. What Does Comcast Own ? (CMCSA, DWA)

    A quick look at businesses owned by of the media and technology company Comcast Corporation.
  3. 2 Companies That Think They Can Be the Next Apple (AAPL)

    Executives at Tesla Motors and Huawei Technologies say their companies have the potential to be as big as Apple
  4. Behind Tesla's 1,173% Rise in 10 years (TSLA)

    Pay attention to whether Tesla’s profitability can prove worthy of the level of enthusiasm generated for the company by CEO ...
  5. Ben Graham's Advice on Reading Financial Statements

    Seven pieces of advice from Benjamin Graham on understanding financial statements.
  6. Is Sales Growth Weaker Than Inventory Growth?

    Find out why Goldman Sachs Equity Research is concerned about inventory growth, which appears to be outpacing sales growth ...
  7. Why Goldman Is Warning About Free Cash Flow Yield (GS)

    Learn why Goldman Sachs is alerting investors to the importance of cash flow, and discover a recommended alternative equity ...
  8. Mergers And Acquisitions: Understanding Takeovers

    In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.
  9. How Much Is The Honest Company Worth?

    As Jessica Alba is contemplating an exit strategy, which public companies may be the most likely suitors for The Honest Company, ...
  10. Unearth Profits In Oil Exploration And Production

    Drill down into financial statements to tap into the right companies and let returns flow.
  11. Calculating Iran's Possible Credit Rating

    Iran's central bank deputy governor says the country could be in line to receive a credit rating. IMF economic data show ...
  12. Are Online Travel Stocks' High Multiples Sensible? (PCLN, EXPE)

    Learn how robust EBITDA growth and fewer threats from disruptors have enabled online travel companies to maintain higher ...
  13. Why GAAP and Non-GAAP Are More Divergent Since 2009

    Examine the divergence of GAAP and adjusted earnings in the years leading up to 2015 to identify the factors causing the ...
  14. What are Financial Statement Assertions?

    Understand financial statement assertions and what they mean in accounting. For investors, it is important that assertions ...
  15. How Inflation and Unemployment Are Related

    How can inflation affect unemployment, and vice versa? Here we examine wage inflation, stagflation and the Phillips Curve.
  16. 4 Reasons You Should Avoid Alibaba (BABA)

    Learn why some analysts believe Alibaba's accounting lacks transparency, and why they believe the company may be overstating ...
  17. GAAP vs. Non-GAAP: Which Should You Consider for Evaluation?

    Find out why GAAP and non-GAAP earnings diverged in 2015. Determine which one deserves investor focus, based on investor ...
  18. Capex Report: Telecom Leads in Spending (T,VZ)

    Find out why the telecom sector led in 2015 spending on capital expenditures and understand how operating cash flow and total ...
  19. Why Billionaire Chanos Is Shorting Alibaba (BABA, JD)

    Learn why famed short seller and hedge fund manager Jim Chanos believes that the price of Alibaba's shares is heading lower, ...
  20. The Pros and Cons of Executives' Pay Tied to Stock Performance

    Watch for situations where lavish executive compensation is either not justified by total shareholder return or rationalized ...
  21. The Top 5 British Petroleum Shareholders (BP)

    Discover the five largest shareholders of British Petroleum stock, who are all investment management firms with billions ...
  22. Buffett's Moat: Is Intel's Competitive Advantage Sustainable? (INTC)

    Examine Intel's economic moat to assess its width and sustainability. Can Intel's competitive advantage keep returns above ...
  23. The Top 5 Petrobras Shareholders (PBR)

    Take a look at the five largest shareholders of Petrobras stock, and learn more about how the Brazilian government has ultimate ...
  24. Buffett's Moat: Is Apple's Competitive Advantage Sustainable? (AAPL)

    Examine the width and sustainability of Apple's economic moat. Find out how brand loyalty, economies of scale and network ...
  25. 3 Cases When Beta Does Not Measure Volatility of Stocks

    Examine the theoretical and statistical relationship between beta and volatility to identify three factors that limit beta's ...
  26. How Much Debt Is Too Much? Examples From Around the World

    Unearth the facts surrounding the growing debt within the U.S., China, Japan and the Eurozone, and discover how these debt ...
  27. 3 Cases Against Buffett's Recommendation on Index Funds (BRK-A, GS)

    Learn why Warren Buffet believes index funds are the best choice for investors, but why they may not perform as well in 2 ...
  28. 4 Reasons for the IPO Market Slowdown in 2016 (IPO)

    Pay attention to the length of time a company waits before going public and whether the prolonged period brings excessive ...
  29. The Top 5 Costco Shareholders (COST)

    Discover the five largest stockholders of Costco, and read about Warren Buffet's opinion regarding the world's second-largest ...
  30. Is Apple Hinting at an iPhone Price Cut? (AAPL)

    Discover why iPhone prices may be coming down in the near future as the world's largest corporation attempts to cope with ...
  31. Best Dividend Stocks With Solid Financial Health (AAPL, GILD)

    Learn how Apple, Gilead Sciences and Valero Energy are financially strong, dividend-paying large-cap companies with a potential ...
  32. Does the S&P 500 Still Have 20% Downside Risk?

    Find out what top bond fund manager Jeffrey Gundlach foresees for the U.S. stock market in 2016, and discover two investments ...
  33. Stock Charts Lie, and So Do Your Statements

    Nearly anyone who looks at charts is wrong in their conclusions about performance. Why?
  34. Panama Papers: the Fascinating American Connection

    The stories behind individual Americans' involvement in the Panama Papers are becoming interestinger and interestinger.
  35. The Top 5 Fannie Mae Shareholders (FNMA)

    Find about the individuals, funds and companies that are top shareholders of Fannie Mae stock. Learn about their profiles ...
  36. S&P 500: Companies Continue to Report Revenues Below Estimate

    Discover why companies are missing revenue estimates but clearing their earnings estimates, and what that might mean for ...
  37. This Central Bank Owns U.S. Equities Worth 20% of GDP

    Discover more about Swiss National Bank's holdings of financial assets, and look into its recent accumulation of foreign ...
  38. Tech Bubbles: How the Dot-Com Era Differs From 2016 (AAPL, CSCO)

    Pay attention to the escalating valuations of pre-IPO companies in 2016, as several will rise above the $10 billion level ...
  39. Yahoo: Make 20% from a Stock Back in Balance (YHOO)

    Investopedia columnist Jordan Rohan on what we know about Yahoo shares--and equally importantly, what we don't know.
  40. Biotech Stocks: Are They Back?

    The bearish trends over the past year have started to reverse themselves which has benefted the biotech industry
  41. Berkshire Hathaway Stock: Capital Structure Analysis (BRK.A)

    Review the capital structure of Berkshire Hathaway, and understand how equity and debt capitalization and enterprise value ...
  42. Youku Tudou vs. YouTube: A Financial Comparison (YOKU, GOOG)

    Learn what are the similarities and differences between YouTube and its Chinese counterpart Youku Tudou, and find out what ...
  43. Wal-Mart Stock: Capital Structure Analysis (WMT)

    Analyze Wal-Mart's capital structure to determine the relative contribution of debt and equity to financing the retailer's ...
  44. Netflix Stock: Capital Structure Analysis (NFLX)

    Find out if Netflix's recent significant debt increases are warranted in its capital structure as one of the leading Internet ...
  45. Global Communications: Exploring Revenue Trends and Fundamentals

    Explore geographical communications sector revenue data to determine which countries have the highest exposure and what factors ...
  46. The Top 4 Bank of America Shareholders (BAC)

    Discover the largest individual and institutional holders of Bank of America stock. Learn about the backgrounds of top Bank ...
  47. The Top 3 American Airlines Shareholders (AAL)

    Find out about the major individual, institutional and mutual fund shareholders of American Airlines Group Inc.
  48. Is Berkshire Hathaway Stock Undervalued? (BRK-A)

    Find out why Berkshire Hathaway stock may be undervalued when the company has an overall growth business, something that ...
  49. Why Financial Statements Are Harder to Read Than Ever Before

    Understand four major reasons that financial statements published in 2016 are more complicated and difficult to read than ...
  50. The Top 4 AT&T Shareholders (T)

    Discover the four highest-ranked direct holders of AT&T, and how all of them have worked their way through the ranks ...
  51. The Top 3 Exxon Mobil Shareholders (XOM)

    Learn about the three largest individual shareholders of Exxon Mobil Corporation (NYSE: XOM) stock, and the largest institutional ...
  52. 4 Reasons Why Selling Is Harder Than Buying

    Understand why selling stocks is harder than buying them, and develop strategies for establishing investment goals with price ...
  53. The Top 3 Chevron Shareholders (CVX)

    Learn about the major shareholders, including individuals, institutional investors and mutual funds, of Chevron Corporation ...
  54. The Top 4 Yelp Shareholders (YELP)

    Read about the top major direct holders of Yelp Inc., and learn about the backgrounds of these shareholders and the numbers ...
  55. The Top 4 J.C. Penney Shareholders (JCP)

    Discover J.C. Penney 's top four direct shareholders. Learn about how many shares they hold and obtain a brief description ...
  56. Cash Is King: The Only S&P 500 Sector With Net Cash (APPL, GOOGL)

    Explore the net cash positions of the largest companies in the technology sector, and discover why carrying large sums of ...
  57. GE Stock: Capital Structure Analysis (GE)

    Analyze GE's capital structure to determine the relative importance of debt and equity financing. Identify trends and drivers ...
  58. McDonald's Stock: Capital Structure Analysis (MCD)

    Learn about the importance of capital structure, and what equity and debt capitalization measures can tell us about the performance ...
  59. Exxon Mobil Stock: Capital Structure Analysis (XOM)

    Investigate Exxon Mobil's capital structure and understand how equity, debt capitalization and enterprise value interact ...
  60. Target Corp: WACC Analysis (TGT)

    Learn about the importance of capital structure when making investment decisions, and how Target's capital structure compares ...
  61. Ford Stock: Capital Structure Analysis (F)

    Learn where Ford is on its road to financial recovery, and how the company's capital structure contributes to the risk profile ...
  62. Alibaba Stock: Capital Structure Analysis (BABA)

    Review Alibaba's capital structure to determine the contribution of debt and equity financing. Identify trends and important ...
  63. Twitter Stock: Capital Structure Analysis (TWTR)

    Analyze Twitter's capital structure to understand the importance of equity and debt financing. Identify trends in financial ...
  64. Sprint Stock: Capital Structure Analysis (S)

    Learn about Sprint's capital structure and how trends in pricing impact the company's market capitalization and enterprise ...
  65. Microsoft Stock: Capital Structure Analysis (MSFT)

    Analyze Microsoft's capital structure to determine the roles of debt and equity in its financing, and explore what these ...
  66. Yahoo Stock: Capital Structure Analysis (YHOO)

    Learn about Yahoo's capital structure, including whether or not a decline in year-over-year earnings is leading the company ...
  67. Apple Stock: Capital Structure Analysis (AAPL)

    Learn about how Apple's common stock buyback strategy has impacted the company's capitalization profile and enterprise value ...
  68. Home Depot Stock: Capital Structure Analysis (HD)

    Analyze Home Depot's capital structure to assess trends in book value and corporate debt. Find out how its its capital structure ...
  69. Book Value Per Share for Banks: Is It a Good Measure? (WFC, BAC)

    Find out why bank stocks usually trade below book value per share, and understand how trading activities increase banks' ...
  70. AT&T Stock: Capital Structure Analysis (T)

    Analyze AT&T's capital structure to discover important trends in the company's financing. Find out how and why debt and ...
  71. GM Stock: Capital Structure Analysis

    Learn why GM's enterprise value increased, and get an update on the company's capital structure, including equity and debt ...
  72. Break-Up Fees: Failed M&A Can Cost A Lot (SPLS,HAL)

    When mergers go bad, there's often a break-up fee involved of as high as 3-5% of the value of the proposed merger.
  73. IBM Stock: Capital Structure Analysis

    Learn about IBM's capital structure and why its market debt-to-equity ratio is lower than the rest of the industry, even ...
  74. Disney Stock: Capital Structure Analysis (DIS)

    Learn about Disney's capital structure and why the company can afford to be more aggressive with its current level of debt ...
  75. 4 Cases When Companies May Deserve a Higher P/E Ratio (AMZN, ZBH)

    Find out why the price-to-earnings ratio is high for some companies. Learn about the impact of growth rates, acquisition ...
  76. AMD Stock: Capital Structure Analysis

    Analyze AMD's debt and shareholder equity to understand the firm's capital structure. Learn about shareholder deficit and ...
  77. Boeing Stock: Capital Structure Analysis (BA)

    Learn about Boeing's capital structure and how it used cash, debt and equity capital to finance a $6.7 billion stock repurchase ...
  78. Fundamental Case Study: Is Amazon's Cash Flow Actually Solid? (AMZN)

    Review Amazon's cash flow situation, including its free cash flow yield, operating cash flow from organic growth and cash ...
  79. Gilead Stock: Capital Structure Analysis (GILD)

    Analyze the capital structure of Gilead Sciences to understand the impacts of debt and equity financing. Identify trends ...
  80. Chevron Stock: Capital Structure Analysis (CVX)

    Learn the nuances of multiple metrics that measure a firm's equity and debt capitalization, while determining Chevron's own ...
  81. Under Armour Stock: Capital Structure Analysis (UA)

    Learn about the recent trends relating to Under Armour’s capitalization structure, including total equity value, debt considerations ...
  82. UPS Stock: Capital Structure Analysis

    Analyze UPS' capital structure to determine the relative importance of debt and equity financing. Identify the factors influencing ...
  83. Nike Stock: Capital Structure Analysis (NKE)

    Analyze Nike's capital structure to understand how the business is being financed. Discover how much equity capital is used ...
  84. Google Stock: Capital Structure Analysis (GOOGL)

    Analyze Alphabet's capital structure to determine how it has changed over time and how it compares to similar companies.
  85. Starbucks Stock: Capital Structure Analysis

    Discover the capital structure analysis for Starbucks Corporation, and learn how it generated a 47% increase in enterprise ...
  86. Chipotle Stock: Capital Structure Analysis (CMG)

    Learn about the impact the foodborne illness outbreak had on Chipotle, how Chipotle operates with no debt, and details behind ...
  87. Amazon Stock: Capital Structure Analysis (AMZN)

    Analyze Amazon's capital structure to determine what roles equity and debt play in financing operations. How has Amazon's ...
  88. S&P 1500 Index: A Revenue Case Study

    Learn what comprises the S&P 1500 and how analysts use revenue trends to benchmark against the performance of a portfolio ...
  89. Global Transportation: 3 Key Industry Players (BRK-A, AAL)

    Get information on some of the leading publicly-traded companies worldwide that are major players in the transportation industry.
  90. Tesla Stock: An Earnings Case Study (TSLA)

    Pay attention to whether Tesla’s quarterly vehicle deliveries continue to outweigh quarterly earnings and revenue from investors’ ...
  91. IBM Stock: An Earnings Case Study

    Learn the main drivers behind IBM's earnings model and why analysts predict a decline in 2016 followed by a strong recovery ...
  92. Facebook Stock: An Earnings Case Study (FB)

    Explore an earnings case study on Facebook, and learn about its earnings, advertising revenue and total revenue growth rates ...
  93. UPS Stock: An Earnings Case Study

    Check out the analysis of earnings for United Parcel Service, including historical earnings, past analyst estimates and future ...
  94. Disney Stock: An Earnings Case Study (DIS)

    Explore an earnings case study of The Walt Disney Company, and learn about its earnings and revenue in 2014 and 2015 and ...
  95. Netflix Stock: An Earnings Case Study (NFLX)

    Find out about Netflix's EPS and revenue in 2014 and 2015, and learn about the number of users, EPS and revenue it is expected ...
  96. Twitter Stock: An Earnings Case Study (TWTR)

    Note how Twitter’s own messaging platform played a role in causing its April 2015 earnings disappointment, bringing sustained ...
  97. Apple Stock: An Earnings Case Study (AAPL)

    Discover an earnings case study on Apple, and learn about its EPS and revenue growth rates, and what analysts are projecting ...
  98. Yahoo! Stock: An Earnings Case Study (YHOO)

    Discover the earnings analysis about Yahoo!, including comments on historical earnings and the breakdown of analysts' past ...
  99. Mergers & Acquisitions Report: 2 Trends in the Market

    Learn what attracts buyers and sellers into today's M&A market, as well as what trends are emerging in 2016 by sector ...
  100. The Debt Report: The Telecom Sector

    Discover how America's telecommunications providers have been piling on debt since the Great Recession, and how part of the ...
Hot Definitions
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