The Return on Equity (ROE) formula is a financial ratio that shows the profit generated by a company in a year compared to the shareholder funds available.It therefore shows how much profit...
Category: Accounting Tutorials
In our latest article looking at key financial ratios, we look at the net profit margin, providing you with analysis and an online calculator to see how it works.Net Profit Margin is one of the...
The Internal Rate of Return (IRR) is one of the most widely used methods for capital appraisal purposes, and there is little doubt that it's also considered one of the most robust ones. However,...
The discounted payback period formula is a useful capital evaluation tool. We provide you with all the explanation and examples you'll need to be able to use this method in your next investment...
The Gearing Ratio is a fundamental formula that is used everyday by financial analysts, banks and investors to understand the capital structure of a company. The financial gearing shows how much debt...
In financial reporting it is critical to ensure operating vs finance lease analysis is based on the substance of the agreement, not its legal form. We provide you with a comparison and points to...