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
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 or a project beyond the final year of the explicit forecast period in a Discounted
Shareholders Equity – how much is your net worth?
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
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, unearned income or unearned revenue is the advance payment received by a company for the
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