The PEG ratio is a valuable tool for investors looking to evaluate the potential of a stock. It takes into account not only the current price and earnings of a company, but also its expected future growth. By comparing the price-to-earnings (P/E) ratio with the...
The forward price-to-earnings (P/E) ratio is a widely used financial metric that provides valuable insights into a company's valuation based on its expected future earnings. Unlike the trailing P/E ratio, which relies on historical earnings data, the forward P/E ratio...
Dividend payout ratio is a key financial metric that investors and analysts use to assess a company's dividend policy and overall financial health. It represents the proportion of a company's earnings that are paid out as dividends to shareholders, with the remaining...
Diluted shares outstanding is a financial metric that gives investors a comprehensive view of a company's capital structure and potential future share count. It takes into account not only the basic common shares outstanding but also any additional shares that could...
Earnings yield is a fundamental financial metric that measures the profitability of a company relative to its current stock price. It provides investors with valuable insights into the potential return they can expect from investing in a particular stock. In this...
What is Shareholder Equity? Shareholder equity, also known as stockholders' equity, is a crucial component of a company's balance sheet. It represents the amount of money that would be returned to shareholders if all of the company's assets were liquidated and all of...
The quick ratio, also known as the acid-test ratio, is a crucial financial metric that measures a company's liquidity and ability to meet its short-term obligations. It provides a more stringent assessment of a company's financial stability compared to the current...
The EV/EBIT ratio is a crucial valuation metric that compares a company's enterprise value to its earnings before interest and taxes (EBIT), also known as operating income. This ratio provides insights into the value of a company's operations, taking into account both...
Net profit, also known as net income or the bottom line, is a crucial financial metric that reflects a company's profitability and financial health. It represents the amount of money remaining after deducting a company's total expenses from its total revenue for a...
What is Contribution Margin? Contribution margin is a crucial financial metric that measures the profitability of a product or service by calculating the difference between its sales revenue and variable costs. It provides valuable insights into how much each unit...
What Are Accruals? Accruals are a fundamental concept in accounting that refers to the recognition of income and expenses in the period they are earned or incurred, regardless of when the actual cash transaction takes place. This method of accounting provides a more...