Fundamentals

  1. How do you determine a tangible asset's useful life?

    Learn what the average return on equity for a company in the chemicals sector is and what factors influence changes in the ...
  2. What factors drive share prices in the aerospace sector?

    Learn about the average annual dividend yield for companies in the electronics sector and understand why the average is a ...
  3. Is Amazon Overvalued? Compare Price-To-Sales Ratios

    The price-to-earnings (P/E) ratio is the most common and easiest valuation metric to calculate. But what happens when earnings ...
  4. How is investing in a corporate bond different from buying shares of the company's ...

    Learn what the just in time, or JIT, inventory system is by contrasting it with the just in case inventory system and reviewing ...
  5. Which consumer goods do Americans buy the most of?

    Explore the various factors that influence estimations of a tangible asset's useful life, as well as standard estimations ...
  6. Explaining Debt

    Debt is any amount a borrower owes a lender.
  7. Explaining Net Operating Profit After Tax

    Net operating profit after tax (NOPAT) describes a company’s potential cash earnings.
  8. Why is a company's diluted EPS always lower than its simple EPS?

    Learn about diluted and basic earnings per share and why a company's diluted earnings per share is usually lower than its ...
  9. What is the difference between earnings per share (EPS) and diluted EPS?

    Learn about EPS and diluted EPS, what they measure, and the difference between the two.
  10. How can a company raise its asset turnover ratio?

    Find out more about the asset turnover ratio, what it measures, how to calculate the ratio and how a company could increase ...
  11. What factors are the primary drivers of banks' share prices?

    Find out which factors are most important when determining the share price of banks and other lending institutions in the ...
  12. What does it signify about a company if there is a large difference between its EPS ...

    Learn more about basic earnings per share and diluted earnings per share, what the ratios measure and what a large discrepancy ...
  13. In what way is credit risk analysis beneficial when trading in the stock market?

    Learn how value investors use credit risk analysis in their determination of which investments to make, and understand how ...
  14. Are corporations required to state the par value of their stock?

    Find out when companies are required to state the par value of stock and why it is beneficial to businesses and shareholders ...
  15. How can I calculate capital employed from a company's balance sheet?

    Discover how to define and then use a simple method to measure a company's capital employed by looking only at its balance ...
  16. What is the difference between par value and market value?

    Learn about the difference between the par value and market value of financial securities, including the role they play in ...
  17. How can I calculate the cash ratio of a company in Excel?

    Find out more about the cash ratio, what the cash ratio measures and how to calculate a company's cash ratio using Microsoft ...
  18. How do I calculate the combined ratio in Excel?

    Find out more about the incurred ratio, what it measures and how to calculate the combined ratio of an insurance company ...
  19. Distinguish A Stock Price Correction With A Price Trend

    We explain how you can use trend lines to help avoid market corrections.
  20. 7 Bankrupt Companies That Came Back

    Bankruptcy is often the end of a company – until it isn't.
  21. Too Late To Invest In EM?

    Investors have flocked to developing markets amid continued low U.S. interest rates & hopes of further economic stimulus ...
  22. How do I use ratios to perform a financial analysis?

    Learn which ratios are used in fundamental analysis. Find out how analysts measure company performance and financial health ...
  23. What types of information does one need to perform a thorough financial analysis?

    Understand what types of information an analyst needs to examine for a thorough financial analysis, and learn how to use ...
  24. How do I calculate the capital to risk weight assets ratio for a bank in Excel?

    Learn more about the capital to risk-weighted assets ratio and how to calculate a bank's capital adequacy ratio using Microsoft ...
  25. How is the short interest of a company related to a short squeeze of a company?

    Learn about the short interest and short squeeze, how to determine if a stock is a short squeeze candidate and how short ...
  26. What is the best ETN for trading mid-cap stocks?

    Explore the world of exchange-traded notes (ETN) and some of the potential risks involved for investors. Find out how ETNs ...
  27. Why Investment Bank IPO Valuations Go Wrong

    The costly services of investment banks don’t necessarily guarantee accuracy in IPO pricing.
  28. What are the key differences between pro forma statements and GAAP statements?

    Learn the key differences between pro forma and GAAP statements. Review examples and cautionary notes about reliance on pro ...
  29. What are some examples of risk management techniques?

    Understand what risk management is in business and why it is a necessary component of ongoing business planning, and review ...
  30. How can you calculate Book Value Of Equity Per Share (BVPS) in Excel?

    Learn about the book value of equity per share, what it measures and how to calculate a company's book value of equity per ...
  31. Why should I consider looking for the A.M. Best rating before investing in an insurance ...

    Find out about the rating system that A.M. Best uses to provide financial strength ratings for companies in the insurance ...
  32. How can you calculate a company's coverage ratio in Excel?

    Learn about coverage ratios, what the interest coverage ratio measures and how to calculate a company's interest coverage ...
  33. What is the average price-to-book ratio in the insurance sector?

    Learn about the average price-to-book, or P/B, ratio for an insurance sector and understand issues analysts face when comparing ...
  34. What metrics are most commonly used to evaluate companies in the insurance sector?

    Learn about insurance-specific issues in valuation and which metrics are most commonly used to evaluate companies in the ...
  35. When might an analyst take an overweight position in a particular stock?

    Discover when an analyst might take an overweight position on a stock. Overweight rating indicates that the analyst has a ...
  36. What is the difference the operating cash flow ratio and solvency ratio?

    Learn about the operating cash flow ratio and the solvency ratio, what they measure, and the difference between the operating ...
  37. How can I calculate the operating cash flow ratio on Excel?

    Learn about the operating cash flow ratio, what it measures and how to calculate the ratio in Microsoft Excel.
  38. Which financial statement can I find noncurrent assets on?

    Find out more about noncurrent assets, the three main types of noncurrent assets and which financial statement includes noncurrent ...
  39. How can I calculate the forward p/e of the S&P 500?

    Learn how forward P/E is calculated for the S&P 500. Forward P/E is an important metric appropriate for changing market conditions.
  40. How does fundamental analysis differ from technical analysis?

    Learn about the differences between technical analysis and fundamental analysis, such as how these investment strategies ...
  41. What items on the balance sheet are most important in fundamental analysis?

    Read about which balance sheet items are considered most important for fundamental analysis, including cash, current liabilities ...
  42. What is an alternative ratio to forward p/e?

    Discover the most commonly used alternative equity evaluation ratio to the forward P/E ratio, and the relative advantages ...
  43. What items on the income statement are considered in fundamental analysis?

    Find out which items in the income statement are considered in fundamental analysis. How do investors use revenue, profit ...
  44. What does a high capital employed imply about risk?

    Learn what capital employed indicates about a company's operational risk level, and how the return on capital employed can ...
  45. Is it better to use fundamental analysis, technical analysis or quantitative analysis ...

    Understand the difference between fundamental, technical and quantitative analysis, and how each measurement helps investors ...
  46. What does the forward p/e indicate about a company?

    Explore the forward price to earnings ratio and learn its significance and how it compares to the traditional price to earnings ...
  47. How can I calculate degree of operating leverage on Excel?

    Find out more about the degree of operating leverage, what the ratio measures and how to calculate the degree of operating ...
  48. What is the difference between carrying value per share and earnings per share?

    Learn about the main differences between carrying value per share, also known as book value of equity per share, and earnings ...
  49. What is the best managed fund for trading mid-cap stocks?

    Explore mid-cap managed fund investments, and learn more about how to evaluate potential mid-cap funds before investing. ...
  50. Why should I dig further if I find a company has positive cash flow from investing ...

    Understand why it's important to dig into a company's sources and uses of cash if it has a positive cash flow from investing ...
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