FAQs tagged as

Fundamental Analysis

  1. What does a high inventory turnover tell investors about a company?

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

  3. How do you calculate working capital?

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

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

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

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

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

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

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

  11. How do I calculate the inventory turnover ratio?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  27. What is a cross hedge?

  28. How do I value the shares that I own in a private company?

  29. Does the balance sheet always balance?

  30. What is the difference between fundamental and technical analysis?

  31. How do I take qualitative factors into consideration when using fundamental analysis?

  32. What is the best method of analysis for forex trading?

  33. Can a company declare a dividend that exceeds its earnings per share?

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