Calculating Net Income
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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.
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 how and why this performance metric is so valuable in analyzing stock.
CAPM is a model that describes the relationship between risk and expected return.
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