Earnings Per Share Ratio (EPS) Calculation The EPS calculation is done when a company’s profit is divided by the outstanding shares of its common stock. The
Liquidity Ratio Formula, Calculation and Examples The liquidity ratio formula is a financial tool like the debt to equity ratio formula and the interest coverage ratio
What is a Golden Share in a Company? There are several kinds of shares; this gives companies and investors a wide variety of options when issuing or purchasing
Functions of Financial Management The functions of financial management are the roles that a finance manager is expected to perform in an organization; such
Principles of Financial Management Financial management Financial management is the process of using money efficiently, transparently, and effectively by following some principles, rules, or
Cash Ratio Formula, Interpretation and Examples The cash ratio formula is one of the ratios used to measure the liquidity of a company. In finance, liquidity
Solvency Ratio Formula and Example The solvency ratio formula guides how to measure a firm’s ability to meet its long-term debt obligations. This metric is
Common vs Preferred Stock Differences and Similarities For decades, companies issue stocks as a means of raising funds to finance various projects such as expansions, purchase of
Quick Ratio vs Current Ratio Differences and Similarities The quick ratio and current ratio are slightly different. Among these two ratios, the quick ratio is known to be
What is Negative Equity? If you have ever taken a loan, you might have heard the word negative equity and positive equity before now
Formula of Interest Coverage Ratio (ICR) and Example The formula of interest coverage ratio is a simple equation like the debt to equity ratio formula, used in the
What are Mid Cap Stocks? List and Examples Mid cap stocks tend to be issued by businesses that have established some level of consistency in their industry by
Current Ratio Formula, Calculation and Examples The current ratio formula and calculation is an example of liquidity ratios used to determine a company’s ability to pay
What are Small Cap Stocks? List and Examples Small cap stocks are part of the many different kinds of stocks. Additional stock types include blue chip, treasury, penny,
Debt to equity ratio formula and interpretation The debt to equity ratio formula is an important metric used in corporate finance. The interpretation of the debt to
(ROE) Return on Equity Formula and Calculation We can derive the return on equity formula by dividing the net income by the shareholders’ equity. The ROE formula
What are Dividend Stocks? Meaning and List [ez-toc] Dividend stocks meaning Dividend stocks are shares that pay stockholders a return on their investment (ROI). This return on
Treasury Stock Accounting and Examples Treasury stock in accounting Treasury stock is referred to as the shares that the company (issuer) buys back from its
Overvaluation of Stock The instances stocks are said to be overvalued are when investor confidence soars, causing a surge in demand, or when
What are Growth Stocks? List and Examples Issuers of growth stocks are those companies whose net profits or earnings are expected to grow at a faster pace