Category: Ratio Analysis
-
What Is The Impact Of Stock Split
Introduction Before understanding the impact of stock split, let us take a quick moment to get a general introduction to this term. Also as a bonus content, we will also get answers to why companies opt for it. You might also like: How To Value Stocks Using Sum Of The Parts (SOTP) Valuation Model What…
-
What Is The Difference Between Earning Per Share And Dividend
Introduction Earning Per Share and Dividend are two amongst the many Financial Metrics, used by Research Analyst in order to understand the fundamentals of the company. Before understanding the difference between Earning Per Share (EPS) and Dividend, let us take a quick moment to understand the meaning of these financial metrics. What is Earning Per…
-
How To Calculate The Benefit Cost Ratio Of A Project (With Example)
What is Benefit Cost Ratio (BCR) Benefit Cost Ratio (BCR) is defined as a ratio between a project’s proposed total cash benefit to it’s planned total cost. Benefit Cost Ratio is used to determine the profitability of a project. The expenses, overall duration and revenue generated by the project are the main factors on which…
-
How To Increase The Accounts Receivable Turnover Of A Company
What is Accounts Receivable Turnover Accounts receivable turnover is a ratio that is used to determine if a company is actually receiving the cash or cash equivalent in their bank account after selling their products / services. Accountants and analysts use accounts receivable turnover to determine how well a company collects on the credit it…
-
How To Calculate Price To Earning (PE) Ratio Of A Stock
What is a Price To Earning Ratio Price to Earning, commonly referred to as the PE ratio, is a financial ratio used to check the fundamental value of a stock. A Price to Earning ratio will tell the investor how much he is willing to pay for the business to earn Rs. 1/- from it.…