A balance sheet, also known as a statement of financial position, is one of the three primary financial statements used to assess a company’s financial health at a specific point in time. It provides a snapshot of a company’s assets, liabilities, and shareholders’ equity. A typical balance sheet consists of the following major parts: Assets: […]
Earnings per Share (EPS) is a financial metric that measures the portion of a company’s profit allocated to each outstanding share of its common stock. EPS is a critical indicator of a company’s profitability and is widely used by investors, analysts, and financial professionals when assessing a company’s financial health and performance. The formula to […]
Ratios are fundamental tools in financial analysis that provide insights into a company’s performance, financial health, and valuation. They help investors, analysts, and financial professionals assess various aspects of a company’s operations and make informed decisions. Here are some common ratios used in financial calculations: **1. Liquidity Ratios: **2. Profitability Ratios: **3. Efficiency Ratios: **4. […]
The Price-Earnings Ratio (P/E ratio), also known as the Price-to-Earnings Ratio, is a financial metric that compares a company’s current share price to its earnings per share (EPS). It is a widely used valuation ratio that helps investors and analysts assess a company’s stock price relative to its earnings and provides insights into its valuation. […]