Learning how to interpret earnings and dividend data — as well as how to recognize chart patterns like support and resistance — can help inform your trading decisions. At first glance, stock charts seem like a chaotic bunch of lines, numbers and acronyms. But once you cut through the jargon...
Year-over-year growthis a method of evaluating change over time by comparing an outcome in one period to the same period in the prior year. In simple terms, it answers the question:“How much did we grow (or shrink) compared to this time last year?”.This approach provides a consistent...
Shareholder yield refers to how much money shareholders receive from a company that is in the form of cash dividends, net stock repurchases, and debt reduction.
Compute the rate of return for the following cash flow How do you interpret a statement of cash flows in accounting? a) How do you calculate the cash flow from operations? How can you use this information to calculate an operating cash ratio? b) Do items such as cash in the bank, inve...
Input the formula into each cell of the ratio table, referencing the data you inputted in the financial statement table. Once you've inputted the formulas, Excel will calculate the ratios for you, and you can interpret the ratios to make informed decisions about the organization. ...
The CAGR is a simple and very flexible metric, which makes it suited for a wide range of uses. In the case of dividends, this metric takes into account the very nature of the market: volatility. Without it, it would be difficult to interpret the annualized growth of the investment. Growt...
It starts with net income, adds back non-cash expenses like depreciation, and then adjusts for changes in working capital (inventory, accounts receivable/payable). A typical healthy business may aim for a net operating cash flow ratio of 1.2 to 2.0. For example, increasing inventory reduces ...
IRR is popular and used widely, but it is also the most difficult of the 6 metrics appearing here to interpret. Many businesspeople begin to sense the difficulty when they first encounter the textbook IRR definition: The internal rate of return (IRR) for a cash flow stream is the interest...
What Is the Debt-to-Equity (D/E) Ratio? The debt-to-equity (D/E) ratio is used to evaluate acompany’s financial leverage. It's calculated by dividing a company’s total liabilities by its shareholder equity. The D/E ratio is an important metric in corporate finance because it's a...
Free cash flow (FCF) is the amount of money a company has that exceeds the amount needed to sustain and grow the business.