Fundamentals

  1. What is the difference between an income statement and a balance sheet?

    Find the current value of a business by reading the balance statement and determine whether operations are efficient by analyzing ...
  2. What are the differences between operating expenses and cost of goods sold (COGS)?

    Discover the differences between operating expenses and cost of goods sold, how each are calculated and why they are considered ...
  3. What are the differences between gross profit and gross margin?

    Learn how gross profit and gross margin are calculated and how each is used in fundamental analysis. Generally, these numbers ...
  4. With so many credit cards in daily use, credit card issuers have grown with their businesses.

    The Big Credit Card Companies Have Room to Grow

    With so many credit cards in daily use, credit card issuers have grown with their businesses.
  5.  In simple terms, it tells how many days it will take for a company to sell its inventory.

    Days Sales of Inventory

    Days Sales of Inventory, also called Days Inventory Outstanding, is a key financial measurement of a company's performance ...
  6. Days Payable Outstanding is widely used by a company's management.

    Days Payable Outstanding

    Days Payable Outstanding, or DPO, is an accounting measurement that tells the average number of days it takes a company to ...
  7. Return on Sales is a financial ratio that is used to measure a company's performance.

    Return on Sales

    Return on Sales is a financial ratio that is used to measure a company's performance. Specifically, it is Operating Profit ...
  8. Why Wall Street Is A Key Player In The World's Economy

    Wall Street is just one little street in lower Manhattan, but both empirically and symbolically, it continues to make the ...
  9. 5 Famous MLB Players Who Went Broke

    Major League Baseball is one of the biggest and most lucrative industries out there.
  10. You may not be able to trade penny-stock options, but small-caps and micro-caps could be close enough. Here's a primer on accessing penny stocks.

    Penny Stocks, Options and Trading on Margin

    You may not be able to trade penny-stock options, but small-caps and micro-caps could be close enough. Here's a primer on ...
  11. Playing Penny Stock-Like ETFs

    While there are no penny stock ETFs or mutual funds, a shrewd investor can pick from a number of small-cap and micro-cap ...
  12. Any active trader watches trends patterns to devise a strategy. Penny stock traders should do the same; it could help them avoid costly mistakes.

    Study These Penny Stock Trading Trends

    Any active trader watches trends patterns to devise a strategy. Penny stock traders should do the same; it could help them ...
  13. An accounting measurement that shows how much of a company’s assets are funded by borrowing

    Total Debt to Total Assets

    Total Debt to total assets, also called the debt ratio, is an accounting measurement that shows how much of a company’s assets ...
  14. Tracking Your Portfolio On Yahoo! Finance

    Yahoo! Finance can sync with brokerage accounts, merge and track investments to monitor performance and help you understand ...
  15. Using The Current Ratio

    Find out more on how this liquidity ratio is used to measure a company's ability to pay short-term obligations.
  16. GAAP

    Learn more about the generally accepted accounting principles, standards and procedures that companies use to compile their ...
  17. Material Adverse Effect A Warning Sign For Stocks

    Learn what this phrase means and how to spot it in a company's financial statements.
  18. Can Good News Be A Signal To Sell?

    Sometimes positive announcements can mean bad news for a stock. Find out why.
  19. Cheap doesn't always equal good. When choosing penny stocks, investors would be wise to note several key factors that affect the way these stocks trade.

    How To Pick Winning Penny Stocks

    Cheap doesn't always equal good. When choosing penny stocks, investors would be wise to note several key factors that affect ...
  20. When computing the PEG ratio for a stock, how is a company's earnings growth rate ...

    Remember that the price/earnings to growth ratio (PEG ratio) is simply a given stock's price/earnings ratio (P/E ratio) divided ...
  21. What is the formula for calculating the current ratio?

    Find out how to calculate the current ratio and what that result can tell you about a potential investment.
  22. Industry Handbook

    In this feature, we take an in-depth look at the various techniques that determine the value and investment quality of companies ...
  23. How To Decode A Company's Earnings Reports

    Read between the lines to decipher a company's true financial condition.
  24. Great Expectations: Forecasting Sales Growth

    Predicting sales growth can be something of a black art, unless you ask the right questions.
  25. Buy Side Vs. Sell Side Analysts

    Find out the difference between these two Wall Street jobs.
  26. How To Calculate A Z-Score

    Investors need to know how to detect signs of looming bankruptcy. The Z-score can help.
  27. The easier it is to convert the asset, the more liquid the asset is considered.

    Liquid & Illiquid Assets

    The easier it is to convert the asset, the more liquid the asset is considered.
  28. 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.
  29. Hostile Takeover

    A hostile takeovers is an unfriendly acquisition attempt by a company or raider that is strongly resisted by the management ...
  30. Why is the compound annual growth rate (CAGR) misleading when assessing long-term ...

    The compound annual growth rate (CAGR) measures the return on an investment over a certain period of time. Below is an overview ...
  31. How do I take qualitative factors into consideration when using fundamental analysis?

    Fundamental analysis is the method of analyzing companies based on factors that affect their intrinsic value. There are two ...
  32. Discounted Cash Flow Analysis

    Find out how analysts determine the fair value of a company with this step-by-step tutorial and learn how to evaluate an ...
  33. Burn Rate Key Factor In Company's Sustainability

    Be careful around companies with high cash burn rates. These investments can turn to ashes.
  34. EBITDA

    Otherwise known as Earnings Before Interest, Taxes, Depreciation and Amortization. Learn more about this indicator of a company's ...
  35. Contribution Margin

    Contribution Margin

    Contribution margin is a cost accounting concept that allows a company to determine the profitability of individual products.
  36. Texas Ratio Rounds Up Bank Failures

    This measure can help investors spot potential trouble in a bank's financials. Find out how.
  37. 12 Things You Need To Know About Financial Statements

    Discover how to keep score of companies to increase your chances of choosing a winner.
  38. Ratio Analysis Tutorial

    If you don't know how to evaluate a company's present performance and its possible future performance, you need to learn ...
  39. Valuing Firms Using Present Value Of Free Cash Flows

    When trying to evaluate a company, it always comes down to determining the value of the free cash flows and discounting them ...
  40. Analyze Investments Quickly With Ratios

    Make informed decisions about your investments with these easy equations.
  41. Negative earnings--or losses--can be caused by temporary factors or permanent difficulties.

    How to Value Companies With Negative Earnings

    For some investors, the possibility of stumbling upon a small biotech with a potential blockbuster drug, or a junior miner ...
  42. how to use DuPont analysis to break apart ROE and get a much better understanding about where movements in ROE are coming from.

    Decoding DuPont Analysis

    Get a deeper understanding of ROE with these three-step and five-step calculations.
  43. 10 Timeless Rules For Investors

    Find out what most investors are doing wrong, and how you can do it right.
  44. Economic Value Added - EVA

    Learn about this metric that measures a company's financial performance based on its residual wealth.
  45. What Investors Can Learn From Insider Trading

    Some insider trading is actually legal - and can be extremely telling for investors.
  46. What is the formula for calculating compound annual growth rate (CAGR) in Excel?

    The concept of CAGR is relatively straightforward and requires only three primary inputs: an investments beginning value, ...
  47. What is the difference between economic value added and market value added?

    Economic value added (EVA) is a performance measure developed by Stern Stewart & Co that attempts to measure the true ...
  48. Top Websites For Checking Your Credit Scores

    You've probably seen spammy ads offering the opportunity to check your credit score for "free." Well, not all credit score ...
  49. PEG Ratio

    Learn more about how this ratio is used to determine a stock's value based on its earnings growth.
  50. Top SEC EDGAR Tools For New Investors

    Navigating the plethora of data available to investors can be overwhelming. The SEC has made it a bit easier with its EDGAR ...
  51. Each year for nearly half a century, Berkshire Hathaway has provided an annual letter to shareholders that discusses the gains it has produced for holders of its common stock.

    Balance Sheet: Analyzing Owners' Equity

    Analyzing owners’ equity is an important analytics tool, but it should be done in the context of other tools such as analyzing ...
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