Fundamentals

What metrics can be used when evaluating a telecommunications company to ensure its ...
Learn about some common and useful cash flow accounting ratios that investors can use to evaluate companies in the telecommunications ... 
What Can A Conference Call Tell About Trends?
Messages in a company conference call can be easily misconstrued. But there is a way to cut through the talking points to ... 
Do Fast Food Franchises Mean Fast Returns?
We look at what it takes to own a fast food franchise: the entry costs, profit potentials, challenges, and sustainability. 
What Makes Tesla's Business Model Different?
Tesla did not invent the first electric car. What it did invent was the first successful business model for bringing compelling ... 
Do Interest Rate Changes Affect Dividend Payers?
Interest rate changes have an effect on prices of dividendrich stocks in interest rate sensitive sectors like utilities, ... 
Which US Airlines Are Poised For LongTerm Gains?
The US airline industry has undergone a dramatic transformation since the last bear market, with one or two carriers likely ... 
How Patent Trolls Hurt Competition
Patent trolls are known to have a negative impact on the overall business ecosystem. Investopedia explores how. 
Are Tech Startups Overvalued?
Tech companies with billion dollar valuations are mushrooming and the NASDAQ index passed 5,000. Is there an app to tell ... 
Companies That Went Bankrupt From Innovation Lag
Companies that don't keep up with marketchanging innovations run the risk of going bankrupt. We look at some examples. 
GoPro & Extreme Sports' Hella Gnarly Relationship
This totally gnarly article will examine the closeknit relationship between GoPro and extreme sports, and how this partnership ... 
What factors make it difficult to compare performance ratios between retail stocks?
Learn which factors make it difficult to compare performance ratios among retailers due to differences in pricing strategies, ... 
How do investors interpret the same store sales ratio when analyzing food and beverage ...
Understand how to calculate the samestore sales ratio. Learn how investors interpret the samestore sales ratio when analyzing ... 
Subaru: Japanese Cars for American Lifestyles
Subaru has built its cars differently from traditional cars, and once someone is drawn in by the company’s catchy advertising ... 
Understanding Qualitative Analysis
Qualitative analysis is a general term describing the nonmathematical scrutiny used by investors and managers to make investment ... 
How Does Dilution Work?
Dilution refers to the reduction in the percentage equity ownership of a company due to additional equity being issued to ... 
Is a Slumping Kinder Morgan a Good Buy?
Learn how Kinder Morgan revenues are under pressure from lower commodity prices and how the growth of future dividend payments ... 
What is the average return on equity for a company in the retail sector?
Find out more about return on equity, how to calculate it and the average return on equity for companies in the retail sector. 
What are some common accretive transactions?
Find out about accretive transactions and how analysts determine whether or not an acquisition is accretive or dilutive by ... 
What portion of the telecommunications sector will benefit most from continued growth ...
Learn what portion of the telecommunications sector will benefit most from continued growth in the use of cellphones, particularly ... 
What portion of the global economy is comprised of the telecommunications sector?
Explore the telecommunications industry in regard to worldwide growth, and learn what percentage of the global economy the ... 
What profit margin is usual for a company in the retail sector?
Find out the typical profit margin for a major retail company, and learn how it compares to the profit margins for other ... 
What is the average pricetoearnings ratio in the retail sector?
Find out more about the pricetoearnings ratio, or P/E ratio, and the average pricetoearnings ratio of companies in the ... 
What annual return could an investor expect on average from the telecommunications ...
Learn what annual return an investor can expect on average from the telecommunications sector and which factors influence ... 
What is the average pricetobook ratio of companies in the retail sector?
Find out more about the pricetobook (P/B) ratio, how to calculate the ratio and the average P/B ratio of companies in the ... 
What are average operating expenses for the oil and gas sector?
Learn about the average operating expenses and average operating expenses margin for the oil and gas sector and how they ... 
What is the average annual dividend yield of companies in the retail sector?
Find out more about the dividend yield ratio, how to calculate a company's dividend yield and the average dividend yield ... 
What is the formula for calculating free cash flow in Excel?
Find out more about free cash flow, the formula for calculating free cash flow and how to calculate a company's free cash ... 
How many votes am I entitled to, if I own ordinary shares of a company?
Understand what an ordinary share is and how it may benefit investors. Learn how many votes an investor is entitled to, if ... 
What metrics are commonly used to evaluate companies in the retail sector?
Discover three of the most common metrics used to evaluate companies in the retail sector, and find out how each plays an ... 
Are companies with high Book Value Of Equity Per Share (BVPS) takeover targets?
Understand what the book value of equity per share (BVPS) is used to measure. Learn if companies with high BVPS are takeover ... 
How do you calculate the quick ratio?
Read about the quick ratio and about the different ways of calculating it, where to find information for it and when you ... 
How do you calculate free cash flow?
Find out how to calculate free cash flow (FCF), learn why the figure is important and examine the case of Google's FCF during ... 
How do you calculate CAGR?
Find out how to understand and use the compound annual growth rate formula, and find out why it helps put an uneven performance ... 
How does an investor evaluate an inventory turnover ratio for a retail company?
Understand more about inventory turnover and what it measures. Learn how an investor should evaluate an inventory turnover ... 
What is the formula for calculating the receivables turnover ratio?
Find out how to calculate the accounts receivable turnover ratio for a business, which should highlight how efficiently the ... 
Is It the Perfect Time to Buy Seadrill?
Seadrill's low price is enticing to many investors, but does the company have what it takes to regain its former value? 
What is the longterm average growth rate of the telecommunications sector?
Examine the current state of the telecommunications sector and learn about the historical average growth rate for telecommunications ... 
Search Engines That Compete With Google
While Bing now controls a substantial part of the online search market, the real threat to Google's dominance may come from ... 
How The NBA Makes Money
The National Basketball Association has moved past Major League Baseball to represent the second most popular sport in the ... 
What is the formula for calculating return on investment (ROI) in Excel?
Find out more about return on investment (ROI) and the formula used for calculating return on investment for a company in ... 
What average annual total return does the utilities sector generate?
Learn the average annual total return the utilities sector generates for investors and why their returns are dependent on ... 
What is the longterm outlook of the telecommunications sector?
Discover the longterm outlook of the telecommunications sector and the various factors contributing to its continued growth ... 
What happens if a company's earnings fall short of estimates?
Understand what it means when a company "misses earnings" and does not live up to consensus estimates, and learn why most ... 
Are there leveraged ETFs that follow the retail sector?
Read about leveraged exchangetraded funds (ETFs) that track the retail sector, and why using leveraged ETFs can be a boombust ... 
Why have utility stocks become more volatile investments than they were historically?
Examine the current state of the utilities sector, and learn why analysts are forecasting uncharacteristic levels of volatility ... 
How do investors interpret the same store sales ratio when analyzing retail stocks?
Examine the importance of the samestore sales ratio as a key equity evaluation metric utilized by investors interested in ... 
4 Factors that Make or Break Seadrill Stock
Learn what factors impact the stock price for Seadrill, including crude oil prices, dividend payments, quarterly revenues ... 
What is the average return on equity for a company in the utilities sector?
Learn specifics about the utilities sector, how return on equity is determined and what the average ROE is for the utilities ... 
What is the formula for calculating return on equity (ROE) in Excel?
Find out more about return on equity, the formula to calculate it and how to calculate return on equity in Microsoft Excel. 
What key conditions might explain a company's declining net sales in spite of increasing ...
Explain why a company reports a decline in net sales even though it generates an increase in revenues during the same reporting ...
Hot Definitions

Barefoot Pilgrim
A slang term for an unsophisticated investor who loses all of his or her wealth by trading equities in the stock market. ... 
Quick Ratio
The quick ratio is an indicator of a company’s shortterm liquidity. The quick ratio measures a company’s ability to meet ... 
Black Tuesday
October 29, 1929, when the DJIA fell 12%  one of the largest oneday drops in stock market history. More than 16 million ... 
Black Monday
October 19, 1987, when the Dow Jones Industrial Average (DJIA) lost almost 22% in a single day. That event marked the beginning ... 
Monetary Policy
Monetary policy is the actions of a central bank, currency board or other regulatory committee that determine the size and ... 
Indemnity
Indemnity is compensation for damages or loss. Indemnity in the legal sense may also refer to an exemption from liability ...
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