Inventory Turnover Ratio – Can you do more with less?
Introduction Inventory in a business is not limited to stocks and goods, it symbolizes the
Debt Service Coverage Ratio – Are you eating more than you can chew?
Money is the lifeblood of any firm. Funds are crucial because they are necessary to
Net Income – What really matters in business
Understanding net income is essential for anyone involved in finance or running a business. It
Book Value Per Share – how much are you worth?
WHAT IS THE BOOK VALUE PER SHARE (BVPS)? The ratio of equity available to common
PEG RATIO – PRICE/EARNINGS-TO-GROWTH
WHAT IS THE PRICE/EARNINGS-TO-GROWTH – PEG RATIO? The price/earnings-to-growth ratio, or the PEG ratio, is
Cash Conversion Cycle – how quickly can you get them?
WHAT IS CASH CONVERSION CYCLE? The cash conversion cycle (CCC) also known as the net
Terminal Value – how much of total value does it reflect?
WHAT IS TERMINAL VALUE? The Terminal Value is the estimated value of a business, asset
Accrual Accounting – a principle wonder worth remembering
WHAT IS ACCRUAL ACCOUNTING? In Financial Accounting, Accrual accounting is an accounting method in which
Shareholders Equity – how much is your net worth?
WHAT IS SHAREHOLDERS EQUITY? Shareholders equity also known as the net worth of the company
Deferred Revenue – You can have it but not yet earned it
WHAT IS DEFERRED REVENUE? In accrual accounting Deferred Revenue also known as the Deferred income,
Return on Assets – are your making the most of your investments?
WHAT IS RETURN ON ASSETS? Return on assets (ROA) refers to a financial profitability ratio
Profit Margin – how high should it be?
WHAT IS PROFIT MARGIN? A profit margin in accounting and finance relates to a measure
SUMPRODUCT in Excel – a matrix calculation function
WHAT IS SUMPRODUCT IN EXCEL FUNCTION? The SUMPRODUCT in Excel function is found under the
Excel Offset function – a perfect set off to the lookups
WHAT IS EXCEL OFFSET FUNCTION? Offset function returns a reference to a range that is
EV/EBITDA Multiple – do you feel the weight of expectations
WHAT IS ENTERPRISE MULTIPLE? EV/EBITDA also known as Enterprise multiple or EV multiple is a
Operating Cash Flow – The only metric that matters
WHAT IS OPEARTING CASH FLOWS (OCF)? The amount of cash generated by the business from
COUNTIFS Function in Excel – count you in or not?
The COUNTIFS function is a versatile tool and is categorized under Statistical functions in Excel.
Revenue – the top line that everyone is chasing
WHAT IS REVENUE? Revenue is the total amount of income generated by the sale of
Treasury Stock – is a share buy back worth it?
WHAT IS TREASURY STOCK? Treasury stock is also known as treasury shares or reacquired stock.
Leveraged Buyout – is it worth the risk?
WHAT IS A LEVERAGED BUYOUT? A Leveraged Buyout is the transaction where one company is