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

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).

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

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

WHAT IS TERMINAL VALUE? The Terminal Value is the estimated value of a business, asset or a project beyond the final year of the explicit forecast period in a Discounted

WHAT IS SHAREHOLDERS EQUITY? Shareholders equity also known as the net worth of the company is equal to the total value of remaining assets that would be returned to the

WHAT IS DEFERRED REVENUE? In accrual accounting Deferred Revenue also known as the Deferred income, unearned income or unearned revenue is the advance payment received by a company for the

WHAT IS RETURN ON ASSETS? Return on assets (ROA) refers to a financial profitability ratio and return on investment metric that shows how profitable a company is relative to its

WHAT IS PROFIT MARGIN? A profit margin in accounting and finance relates to a measure of a company’s profit or earnings relative to its revenue. It is the most straightforward

WHAT IS ENTERPRISE MULTIPLE? EV/EBITDA also known as Enterprise multiple or EV multiple is a financial ratio that compares a company’s Enterprise Value (EV) to its annual Earnings Before Interest,