An Introduction To The Income Statement
Loading the player...
The income statement is a measurement of a company's financial performance over a specific period of time. Discover its main components and how they work together.
The dividend payout ratio and retention ratio measure how much profit a company gives back to shareholders as dividends. When a business earns money, it must decide whether to use all of its earnings for future operations or to pass some of it along to stockholders through a quarterly dividend check.
"Mark-to-market" accounting is a way of valuing assets based on how much they could sell for under current market conditions. In recent decades, it has become the standard way to record financial assets on a company's balance sheet.
A business's "gross margin" is a rough gauge of how profitable its operations are. It measures how much sales revenue the company retains after all of the direct costs associated with making a product or providing a service are accounted for. Direct costs refer to materials, labor and expenses related to producing a product.
Weighted average cost of capital may be hard to calculate, but it's a solid way to measure investment quality
Learn more about the different ways you can calculate your portfolio's average return.
Goodwill is more than just benevolence - it also refers to an accounting term frequently used in M&A. Learn more about it here.
comments powered by Disqus