FAQs tagged as

Fundamental Analysis

  1. What is a good interest coverage ratio?

  2. What is a bad interest coverage ratio?

  3. What is a good gearing ratio?

  4. What is the difference between the gearing ratio and the debt-to-equity ratio?

  5. What is the difference between interest coverage ratio and TIE?

  6. What is accrual accounting used for in finance?

  7. When are expenses and revenues counted in accrual accounting?

  8. When does a business report gross margins?

  9. What is the difference between a P&L statement and a balance sheet?

  10. What are essential steps to financial due diligence?

  11. How do I build a trading strategy after spotting a breakaway gap pattern?

  12. What's the difference between capital expenditures (CAPEX) and operational expenditures ...

  13. What's the difference between capital expenditures (CAPEX) and net working capital?

  14. Why is it important to understand the Circular Flow Of Income when making investment ...

  15. Which leverage ratios are most useful for analyzing manufacturing companies?

  16. How is it possible for a company to have a negative enterprise value?

  17. What does a mutual fund's beta coefficient measure?

  18. What's the difference between enterprise value and market capitalization?

  19. What metrics should I evaluate when looking for high-yielding dividend stocks?

  20. What's the difference between retained earnings and revenue?

  21. How do I calculate earnings per share with simple capital and complex capital structure?

  22. What are the differences between operating expenses and cost of goods sold (COGS)?

  23. What are the differences between gross profit and gross margin?

  24. Does gross profit account for sales returns?

  25. What is the difference between an income statement and a balance sheet?

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

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

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

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

  30. What are some common traits of undervalued stocks?

  31. What are the best indicators for evaluating technology stocks?

  32. How does Warren Buffett choose the companies he buys?

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

  34. Why is it sometimes better to use an average inventory figure when calculating the ...

  35. How do you calculate working capital?

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

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

  38. What are the main differences between return on equity (ROE) and return on assets ...

  39. What are the main differences between compound annual growth rate (CAGR) and internal ...

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

  41. How do I calculate the inventory turnover ratio?

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

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

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

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

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

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

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

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

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

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

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

  53. What's the difference between weighted average cost of capital (WACC) and internal ...

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

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

  56. What is a cross hedge?

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

  58. Does the balance sheet always balance?

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

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

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

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