Calculating Net Income
Loading the player...
Otherwise known as the "bottom line", net income is the most commonly used indicator of a company's profitability. Learn more about how it an investor's decision to own or sell a stock.
Otherwise known as Earnings Before Interest, Taxes, Depreciation and Amortization. Learn more about this indicator of a company's financial performance.
Float is money in the banking system that is briefly counted twice due to delays in processing checks.
How is a company being run? Is it generating profits? The answer to these questions lies in analyzing the profitability ratios of a company.
Whether a company chooses FIFO or LIFO has important implications for the bottom line and for tax liability.
The Debt-Service Coverage Ratio (DSCR) is a simple way to analyze whether a company can adequately manage its borrowing costs. The ratio helps banks evaluate the credit worthiness of an organization that is applying for a loan. It also tips off investors to companies carrying a debt level that could be destructive.
Selling, general and administrative expenses (SG&A) are a company's total direct and indirect costs from selling its product or service as well as its total general and administrative expenses. The company reports its SG&A on the income statement.
comments powered by Disqus