Operating Expenses (Opex) – how high are they?
Introduction Operating expenses form the backbone of every business, encompassing essential costs incurred to sustain daily operations. Understanding operating expenses is paramount for investors and analysts, offering valuable insights into
Days Payable Outstanding (DPO) – how long do you have before you pay them
Introduction In the dynamic landscape of financial management, Days Payable Outstanding (DPO) emerges as a crucial indicator of a company’s financial stability and operational efficiency. DPO measures the average number
Days sales outstanding (DSO) – How quickly are you recovering your dues?
Introduction In the day-to-day operations of a business, transactions occur frequently, ranging from cash exchanges to credit agreements. While cash transactions ensure immediate liquidity, credit transactions can tie up funds,
Cost of Goods Sold – whats your gross margin like?
Introduction In business finance and accounting, expenses form the most significant aspect of manufacturing, acquisition, and product pricing. These expenses are categorised as direct and indirect expenses. As the keystone
Inventory Turnover Ratio – Can you do more with less?
Introduction Inventory in a business is not limited to stocks and goods, it symbolizes the flow of resources, supply and demand and a firm foundation of customer satisfaction. Inventory turnover
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 finance assets such as equipment, inventories, and technology, to meet working capital requirements, and to
Net Income – What really matters in business
Understanding net income is essential for anyone involved in finance or running a business. It serves as a fundamental measure of a company’s profitability and financial health. Net income, often
Book Value Per Share – how much are you worth?
WHAT IS THE BOOK VALUE PER SHARE (BVPS)? The ratio of equity available to common stockholders against the number of outstanding shares is called the Book Value per share (BVPS).
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 a stock valuation metric that helps investors and analysts value a stock by taking into
Cash Conversion Cycle – how quickly can you get them?
WHAT IS CASH CONVERSION CYCLE? The cash conversion cycle (CCC) also known as the net operating cycle or the cash cycle measures the length of time taken by a company