FAQs tagged as

Balance Sheet

  1. Why is it sometimes better to use an average inventory figure when calculating the inventory turnover ratio?

  2. How do you calculate working capital?

  3. How do changes in working capital affect a company's cash flow?

  4. What is the formula for calculating compound annual growth rate (CAGR) in Excel?

  5. How do you calculate return on equity (ROE)?

  6. Why is the compound annual growth rate (CAGR) misleading when assessing long-term growth rates?

  7. What are the main differences between return on equity (ROE) and return on assets (ROA)?

  8. What are the main differences between compound annual growth rate (CAGR) and internal rate of return (IRR)?

  9. Are companies with a negative return on equity (ROE) always a bad investment?

  10. How do I calculate the inventory turnover ratio?

  11. Why is return on investment (ROI) a bad measure for calculating long-term investments?

  12. What factors go into calculating social return on investment (SROI)?

  13. How do I calculate the P/E ratio of a company?

  14. How can the price-to-earnings (P/E) ratio mislead investors?

  15. How can return on investment (ROI) calculations be manipulated?

  16. Is there value in comparing companies from different sectors by using the debt-to-equity ratio?

  17. What is the formula for calculating earnings per share (EPS)?

  18. What is the formula for calculating the current ratio?

  19. How do interest rates affect the weighted average cost of capital (WACC) calculation?

  20. What is considered a high debt-to-equity ratio and what does it say about the company?

  21. What are the best uses for trailing EPS, current EPS and forward EPS?

  22. How can the current ratio be misinterpreted by investors?

  23. What is the formula for calculating weighted average cost of capital (WACC)?

  24. What is the formula for calculating the debt-to-equity ratio?

  25. What's the difference between weighted average cost of capital (WACC) and internal rate of return (IRR)?

  26. What are the main differences between the current ratio and the quick ratio?

  27. Why is earnings per share (EPS) also known as “The Bottom Line”?

  28. What are some of the key differences between IFRS and U.S. GAAP?

  29. How are oil reserves accounted for on an oil company's balance sheet?

  30. Does the balance sheet always balance?

  31. How do you determine a company's percentage of credit sales?

  32. What is fair capital?

  33. When is a dividend payment recognized in the shareholders equity portion of the balance sheet?

  34. What does negative shareholder equity on a balance sheet mean?

  35. What happens to the stock prices of two companies involved in an acquisition?

  36. What is a treasury stock?

  37. What are pro forma earnings?

  38. What are the generally accepted accounting principles for inventory reserves?

  39. What is the short/current long-term debt account on a company's balance sheet?

  40. What's the difference between short-term investments in marketable securities and equity?

  41. What is the difference between amortization and depreciation?

  42. What is property, plant and equipment, and what does it mean?

  43. What happens if a company doesn't think it will collect on some of its receivables?

  44. Where do companies keep their cash?

  45. What is the difference between asset-based lending and asset financing?

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