Fundamentals

How do hedge funds use short selling?
Learn how hedge funds use short selling to profit from stocks that are falling in price. Explore different analytical techniques ... 
What is the difference between operating cash flow and net income?
Learn how net income is an income statement for a certain period of time, while cash flow shows inflows and outflows based ... 
What is the formula for calculating earnings per share (EPS) in Excel?
Understand the basics of the earnings per share ratio and how this important financial metric is calculated in Excel and ... 
How do I calculate dividend payout ratio from a balance sheet?
Understand what the dividend payout ratio indicates and learn how it can be calculated using the figures from a company's ... 
How do I calculate the debttoequity ratio in Excel?
Understand the basics of the debt to equity ratio, how it is interpreted as a measure of financial stability and how it is ... 
How can I calculate the acid test ratio in Excel?
Understand how the acid test ratio is used by analysts to determine the financial health of a company and how to calculate ... 
What is the formula for calculating the current ratio in Excel?
Understand the basics of the current ratio, including its use and interpretation as a financial metric and how it is calculated ... 
What is common stock and preferred stock?
Learn about the differences between common and preferred shares. Explore situations where preferred shares have more favorable ... 
Why should fundamental investors pay attention to Cash Value Added (CVA)?
Take a deeper look at cash value added, a metric used by fundamental investors to assess the ability of a company to meet ... 
What is considered a good PEG (price to earnings growth) ratio?
Learn about the price/earnings to growth (PEG) ratio and understand what investors and market analysts consider a good ratio ... 
What is the formula for calculating the quick ratio in Excel?
Understand the basics of the quick ratio, including how it is used as a measure of a company's liquidity and how to calculate ... 
What is the difference between profitability and profit?
Calculating company profit and profitability are not one and the same, and investors should understand the difference between ... 
How do you calculate operating cash flow in Excel?
Lenders and investors can predict the success of a company by using the spreadsheet application Excel to calculate the free ... 
Are taxes calculated in operating cash flow?
Learn how taxes are involved with the calculations for operating cash flow, and find out about the importance of operational ... 
What are the main benchmarks that track the oil & gas drilling sector?
Read about several different types of benchmarks that investors can use to track the overall performance of the oil and gas ... 
What are the main benchmarks that track the forest products sector?
Learn how the net debt to EBITDA ratio, EBITDA to interest ratio and debt to capital ratio financial benchmarks are used ... 
Are secondary capital markets beneficial for society, or are there purely speculative?
Learn why secondary bond markets are essential for both the capital market and economy. Explore the reasons they must be ... 
What metrics can be used to evaluate companies in the forest products sector?
Understand some of the best financial and equity valuation measurements that can be utilized to evaluate companies in the ... 
What Happened To Obama’s Amnesty Bill?
The sweeping Republican majorities were supposed to trigger change, but now they are preparing to embrace the Obama immigration ... 
Equity Multiplier
The equity multiplier is a straightforward ratio used to measure a company’s financial leverage. The ratio is calculated ... 
What's Net Debt?
Net debt is one of the many metrics used to measure a company’s ability to pay its debts. There are other metrics such as ... 
What is the difference between the acid test ratio and working capital ratio?
Using liquidity ratios to determine the financial stability of a company is an important tool to accounting professionals ... 
Do you always have to consider intrinsic value when purchasing a stock? Why or why ...
Take a deeper look at why value investors consider a stock's intrinsic value an important consideration before picking a ... 
What are some examples of return on investment capital?
Read about some basic examples of return on investment capital for publicly traded companies and companies that have a handful ... 
What is the difference between the yield of stock and the yield of a bond?
Explore and understand the various meanings of the investment term "yield" as it is applied to equity investments and bond ... 
What is the difference between cash flow and EBIDTA?
Understand the difference between cash flow and EBITDA, and find out why cash flow is a more comprehensive metric for evaluating ... 
What is the difference between an IPO and a seasoned issue?
Learn how companies issue IPO securities when they first go public and seasoned issue shares if they sell more shares in ... 
How do you use Microsoft Excel to calculate liquidity ratios?
Learn how to calculate the most common liquidity ratios in Microsoft Excel by inputting financial figures from a company's ... 
What is the difference between EBIT and operating income?
Read about some of the subtle differences identified by the SEC between earnings before interest and taxes, or EBIT, and ... 
What is the difference between cash flow and fund flow?
See how cash flow and fund flow differ from each other, and why fund flow can be used very differently by accountants and ... 
For which types of investments is the debt service coverage ratio (DSCR) the most ...
Understand what the debt service coverage ratio is used for and what types of companies it can best be applied to for equity ... 
How do you use Excel to calculate a debt service coverage ratio (DSCR)?
Find out how to calculate a company's debt service coverage ratio, or DSCR, in Microsoft Excel, and learn where to locate ... 
How accurate or important is the debt service coverage ratio (DSCR) in evaluating ...
See how investors can use the debt service coverage ratio to evaluate the solvency of a company before making an investment ... 
How do I calculate the dividend payout ratio from an income statement?
Understand the dividend payout ratio, how it differs from the dividend yield and how it can be calculated from a company's ... 
What is the average pricetoearnings ratio in the oil & gas drilling sector?
Investing in the energy sector provides an opportunity for value investors, but it is necessary to understand metrics such ... 
What is the average return on equity for a company in the oil & gas drilling sector?
Investing in the oil and gas drilling sector can be a profitable endeavor for some investors, but it is first necessary to ... 
Over what duration should I be examining a given stock's PEG (price to earnings growth) ...
Learn how the PEG ratio provides an assessment of a stock's current price based on its trailing or projected earnings growth ... 
What is the average debt/equity ratio of companies in the forest products sector?
Calculating a company's debt to equity ratio is beneficial to investors when analyzing a company's liquidity and overall ... 
Should I care about the book value per common share when dealing with a blue chip ...
See why shareholders of any listed company, even owners of blue chip stock, should care about what the book value per common ... 
What is the average profit margin for a company in the oil & gas drilling sector?
Understanding the profit margin is an integral aspect of analyzing whether an oil & gas drilling company is a worthwhile ... 
What is the average profit margin for a company in the forest products sector?
Profit margin is a measurement of profitability that investors can use to determine the suitability of an investment in the ... 
What is the average return on equity for a company in the forest products sector?
Investing in the forestry sector can provide a hedge against other asset classes, but investors should be aware of the sector's ... 
What kind of financial reporting requirements does GAAP set out?
Look at some of the major financial reporting requirements set forth by the generally accepted accounting principles and ... 
Why would you take DCF into account rather than simply projecting future revenues?
Learn what discounted cash flow analysis is and why it is considered a better equity valuation tool than simply projecting ... 
What is the formula for calculating gross profit margin in Excel?
Understand the basics of the gross profit margin including its interpretation as a measure of profitability and its calculation ... 
What is face value and how is it determined?
Face value is determined arbitrarily by issuers and designed to give a reasonable expectation of value to the stock, bond ... 
What is the average profit margin for a utility company?
Learn the average profit margin in the utilities sector and why standard supply and demand forces are limited among energy ... 
What is the best cash flow management tool?
Understand the basics of cash flow management and which tools are most useful, both those included in financial software ... 
What is the difference between capital investment decision and current asset decision?
Learn how capital investment decisions are longterm funding decisions, while current asset decisions are shortterm funding ... 
What is the difference between the debt ratio of a company and the debt ratio of ...
Discover the different financial evaluation measures that are most commonly applied to individuals and corporations, respectively.
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