Interest ExpenseInterest IncomeNet Interest Income (NII)Net Interest Margin (NIM)Inventory Write-DownInventory Write-OffDiscontinued Operations Income Taxes Effective Tax RateEffective vs Marginal Tax RatesNet Operating Loss (NOL) Shares Outstanding Shares OutstandingWeighted Average Shares OutstandingTrea...
ADR is short for the average daily rate. It describes the average daily income per paid occupied room. Revenue managers use it to measure a hotel’s operating performance. ADR is one of the main hospitality KPIs (key performance indicators) hotels use daily along with occupancy rate and revenu...
The Average Revenue Per User (ARPU) quantifies the amount of revenue generated on average from each customer. The implied ARPU can be calculated by dividing the total amount of revenue generated by the company by the total number of users (i.e. customers). How to Calculate ARPU? The term...
The dividend yield is calculated by dividing the annual dividend per share (DPS) by the current stock price. For example, if you bought a stock for $50 and it had an annual dividend of $2, your dividend yield would be 4%. The average dividend yield is about 2% to 4%, but it varie...
R = Required Rate of Return G = Sustainable Growth Rate P/E Ratio Formula Explanation The basic P/E formula takes the current stock price and EPS to find the current P/E. EPS is found by taking earnings from the last twelve months divided by theweighted average shares outstanding. Earnings...
Below are two versions of the earnings per share formula: EPS = (Net Income – Preferred Dividends) / End of period Shares Outstanding EPS = (Net Income – Preferred Dividends) / Weighted Average Shares Outstanding The first formula uses total outstanding shares to calculate EPS, but in pr...
The definition of a good profit margin depends on the type ofindustryin which a company operates⁵. Generally, a 10% operating profit margin is considered an average performance, and a 20% margin is excellent. It's also important to pay attention to the level of interest payments from a ...
The residual income formula is calculated by subtracting the product of the minimum required return on capital and the average cost of the department’s capital from the department’s operating income. This equation is pretty simple and incredible useful for management because it looks at one of ...
Revenue is the money generated from normal business operations, calculated as the average sales price times the number of units sold. It is the top line (or gross income) figure from which costs are subtracted to determine net income. Revenue is also known as sales on theincome statement. ...
EPS=NI−PDAOCSwhere:NI=Net incomePD=Preferred dividendsAOCS=Average outstanding common sharesEPS=AOCSNI−PDwhere:NI=Net incomePD=Preferred dividendsAOCS=Average outstanding common shares The formula uses the averageoutstanding shares. Typically, an average number is used because companies ...