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 and return on investment metric that shows how profitable a company is relative to its
Profit Margin – how high should it be?
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
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 financial ratio that compares a company’s Enterprise Value (EV) to its annual Earnings Before Interest,
Operating Cash Flow – The only metric that matters
WHAT IS OPEARTING CASH FLOWS (OCF)? The amount of cash generated by the business from its regular operating activities within a specific time period is called as Operating Cash Flow
Revenue – the top line that everyone is chasing
WHAT IS REVENUE? Revenue is the total amount of income generated by the sale of goods or rendering of services related to the company’s primary operations calculated as the sales
Treasury Stock – is a share buy back worth it?
WHAT IS TREASURY STOCK? Treasury stock is also known as treasury shares or reacquired stock. It refers to the stock that has been bought back by the issuing company from
Leveraged Buyout – is it worth the risk?
WHAT IS A LEVERAGED BUYOUT? A Leveraged Buyout is the transaction where one company is acquired by another company using debt (bonds or loans) as the main source of consideration
Dividends – Does it affect company value?
INTRODUCTION If any person is looking out for building long term wealth, then investing in the stock market is one of the best options. One can earn money in the
EBITA – better than EBITDA?
WHAT IS EBITA? The full form of EBITA is Earnings before Interest, Tax and Amortization. EBITA is a metric used by Analysts and Investors to measure the operating profitability and
Net Working Capital – positive or negative?
INTRODUCTION A company’s finance team one of the job is to evaluate whether their company can meet the unexpected short term liability without the need to rely on outside sources