Understanding The Leverage Ratio
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Learn more on how the leverage ratio is used to calculate a company's ability to meet financial obligations and how changes in output will affect operating income.
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.
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
Goodwill is more than just benevolence - it also refers to an accounting term frequently used in M&A. Learn more about it here.
Learn more about this method used in inequity valuation and corporate finance.
Find out exactly what margin is and why it's important.
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