Return on Equity Formula, Analysis & Calculator
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 … Read More
Category: Finance Tutorials
Internal Rate of Return Calculation Example
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 … Read More
PayBack Period as a Capital Appraisal Method
Payback Period is one of the capital appraisal methods that can be used to understand whether a project is worthwhile. The question that the Payback Period answers is how long … Read More
Gearing Ratio Formula, Calculation and Analysis
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 … Read More
Dividend Payout Ratio-Formula, Calculator and Analysis
Dividend payout ratio is one of the most important financial ratios that can be used not only to pick stocks for your portfolio but to also understand if a company … Read More
Components of Working Capital and how to manage it
Being able to understand what the components of working capital are and how to effectively manage them is very important for a business owner, for a senior executive and for an … Read More
Quick Ratio (Acid Test Ratio) Calculator and Analysis
Another financial ratio that is commonly used to understand how liquid a company is is the quick ratio or as it’s often called the acid test ratio. The difference between … Read More