Fundamentals

  1. How is direct cost margin calculated?

    Find out how to calculate the direct cost margin, including how it is used in corporate finance as an indicator of operational ...
  2. How does the profit margin compare for a generic drug versus a brand name drug?

    Learn how the profit margins compare for generic drugs and brand-name drugs. Brand-name drugs cost three to four times more ...
  3. What are the differences between preference shares and debentures?

    Learn why preference shares are equity securities and debentures are debt securities. Understand the differences between ...
  4. The Most Crucial Financial Ratios For Penny Stocks

    Given adequate financial disclosure, investors can use some of the same financial ratios for valuing blue chip stocks to ...
  5. Can Microsoft Apps Compete With Android & Apple?

    Microsoft's answer to the smartphone crazy is the Windows Phone. The obvious problem with Windows Phones in an ever-connected ...
  6. How do prepaid expenses affect liquidity ratio calculations?

    Understand how prepaid expenses affect a company's liquidity ratio calculations. Learn about the most common types of liquidity ...
  7. The Story Behind Tesla's Success

    Tesla’s cars have been a hit not only car buyers, but also catapulted the company into the spotlight as one of the few successful ...
  8. Why is it useful for investors to calculate Net Operating Profit After Tax for over-leveraged ...

    Understand why it is useful for investors to calculate net operating profit after tax (NOPAT) for overleveraged companies ...
  9. What is the average price-to-book ratio in the aerospace sector?

    Find out more about the average price-to-book ratio of the aerospace sector and the importance of comparing P/B ratios between ...
  10. What price-to-earnings ratio is average in the aerospace sector?

    Find out what the average price-to-earnings ratio is for companies in the aerospace sector and the importance of comparing ...
  11. What is the average return on equity for a company in the aerospace sector?

    Learn about the average return on equity of companies in the aerospace sector and what ROE indicates about a company.
  12. Will Downsizing Your Home Pay Off?

    A little math can help you determine whether downsizing your home is worth it. It involves subtracting the costs of such ...
  13. Top Reasons to Invest in Google

    There's three main reasons Google stands to succeed for years to come.
  14. Why should investors consider the fully diluted share amount?

    Learn about the importance of considering the fully diluted shares, how it could affect a stock's share price and how dilution ...
  15. Why is it beneficial to use Net Operating Profit After Tax to compare companies within ...

    Understand why it's beneficial to use net operating profit after tax (NOPAT) to compare companies within the same industry ...
  16. What is the average return on total revenue for the insurance sector?

    Learn about the three main segments of the insurance industry, and find out what the average return on revenues is for the ...
  17. How do I calculate the rule of 72 using Matlab?

    Learn how to calculate years it takes for an investment to double or halve based on the rate of return or inflation using ...
  18. What's the difference between basic shares and fully diluted shares?

    Find out more about basic outstanding shares, fully diluted shares, the difference between the calculation of shares and ...
  19. How might a company's contingent liabilities affect its share price?

    Discover what contingent liabilities are, and how and to what extent such liabilities may have an impact on a company's share ...
  20. What types of future events are taking into account for contingent liability?

    Understand the concept of contingent liabilities, and learn about some of the most common types of contingent liabilities ...
  21. Is Snapchat Overvalued?

    Snapchat has been valued at $10 billion, but it's unclear how profitable the private company really is.
  22. How is residual value of an asset determined?

    Understand what the residual value of an asset is and how the residual value of an asset is calculated. Learn how residual ...
  23. What is the average debt/equity ratio of airline companies?

    Find out more about the average long-term debt to equity ratio of companies in the airlines sector and the importance of ...
  24. What is the average price-to-book ratio for companies in the automotive sector?

    Learn about the average price-to-book ratio, or P/B ratio, for companies in the automotive sector and how to determine which ...
  25. What debt/equity ratio is average in the automotive sector?

    Find out more about the importance of analyzing the debt-to-equity ratio and the average debt-to-equity ratio of companies ...
  26. What is the difference between subordinated debt and senior debt?

    Understand the difference between subordinated debt and senior debt. Learn what a company is required to do in case of bankruptcy.
  27. When should a business avoid debt financing?

    Read about the optimal use of debt in a business capital structure and how to know when a business should avoid further debt ...
  28. Cash Flow Is King: How to Keep it Running

    Why is cash flow so important, and what steps can a business take to improve it?
  29. Can pro forma financial statements be more helpful to analysts and investors than ...

    Examine the controversy over GAAP reporting standards as compared to pro forma statements, and learn which are considered ...
  30. How does bank reconciliation affect a cash control policy?

    Understand how the bank reconciliation process augments a company's cash controls and is an essential part of proper cash ...
  31. 5 Great Stocks You Didn't Know Existed

    If you're looking for new investment opportunities, check out these five stocks that tend to fly under the radar of popular ...
  32. Financial Analysis: Solvency Vs. Liquidity Ratios

    Solvency and liquidity are equally important for a company's financial health. A number of financial ratios are used to measure ...
  33. How do bankruptcy costs affect a company's capital structure?

    Understand the Modigliani and Miller theory of capital structure. Learn how the theory shows how bankruptcy costs affect ...
  34. What metrics are most appropriate to evaluate companies in the aerospace sector?

    See which fundamental metrics, such as advanced product bookings, are most important to evaluate before investing in the ...
  35. How does market share affect a company's stock performance?

    Discover how market share affects a company's performance. Market share is important in cyclical industries and not important ...
  36. Which metric should I pay more attention to, EV/EBITDA or P/E?

    Examine and compare the relative advantages and disadvantages of the two equity evaluation metrics, EV/EBITDA and the price-to-earnings ...
  37. The Top 3 Reasons Southwest's Stock Is a 'Buy'

    Discover the key differences between Southwest Airlines and other major U.S. airlines that have made Southwest a major business ...
  38. 10 Ways to Nurse Cash Flow in Healthcare

    Running a business in healthcare? You might want to rethink cash flow management practices.
  39. When and why should the terminal value be discounted?

    Find out why investors use the terminal value, why the terminal value is discounted to the present day, and how it's related ...
  40. How much do changes in interest rates affect the profitability of the insurance sector?

    Learn about the relationship between interest rates and insurance company profitability, and how interest rates can affect ...
  41. What is the difference between the operating the operating cash flow ratio and operating ...

    Find out more about the operating cash flow ratio, the operating cash flow margin, how to calculate these ratios and the ...
  42. How can I use Net Operating Profit After Tax (NOPAT) to compare companies and make ...

    Learn what net operating profit after tax (NOPAT) measures. Understand how an investor can use NOPAT after tax to compare ...
  43. What are the primary risks an investor should consider when investing in the food ...

    Understand some of the various risk factors investors should consider when seeking investment opportunities in the food and ...
  44. 10 Ways to Loosen Up Your Cash Flow

    Cash flow is king. Here are a few ways to fatten it up.
  45. How to Help Clients with Cash Flow Issues

    Sometimes your spending gets out of hand or income has a hiccup. Here's how financial advisors can help clients who have ...
  46. How to Improve Your Cash Flow in Manufacturing

    Here are 10 ways to to improve a manufacturer's cash flow.
  47. 10 Ways to Improve Cash Flow in Construction

    Improving cash flow in construction requires some sector-specific strategies.
  48. What is the average annual dividend yield of companies in the wholesale sector?

    Find out more about the wholesale sector, what the dividend yield measures and the average annual dividend yield for companies ...
  49. What is the average debt/equity ratio for the food and beverage sector?

    Find out more about the categories in the food and beverage sector and the average long-term debt-to-equity ratio for the ...
  50. What debt/equity ratio should I look for when investing in industrial companies?

    Find out more about the industrial goods sector, what the debt/equity ratio measures and what ratio is typical for industrial ...
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