The speaker provides an overview of liquidity ratios. They determine how agile a company is as far as cash flow is concerned. She discusses the current ratio and quick ratio and talks through each ratio in detail.
The speaker provides a basic overview of the return on equity formula and breaks it down into its components. Return on equity takes net income and divides it by equity. This formula breaks down into profit margin times equity turnover
The speaker discusses the return on equity ratio. This ratio represents the return the company is able to generate on the book value of their equity. It is defined numerically as earnings divided by book value of the equity from the
The speaker covers some of the key cash conversion cycle ratios including days receivable outstanding, days payable outstanding, and days inventory outstanding. These ratios are key in measuring the cash flow and operating efficiency for manufacturing companies and provide the basis for line items on
The speaker covers a common valuation ratio, the price to book ratio (P/B Ratio). He talks through the calculation of this ratio and then discusses the advantages and disadvantages of using this ratio.
The speaker covers an alternative evaluation technique to the price to earnings ratio when valuing companies which are private or otherwise lacks earnings per share or stock price.
The speaker covers the basic definition of the P/E ratio and discusses the advantages and disadvantages of this valuation technique.
The speaker covers the basics of the price to earnings to growth ratio, or PEG Ratio. He mentions that with higher earnings growth, a company with a high P/E on next year's earnings might have a much lower
The speaker covers the basic definition of the price to sales ratio and then covers some of the characteristics that investors look for when examining this financial ratio.
The speaker provides a basic overview of the characteristics of the price to sales ratio. He mentions that younger companies typically do not have a good earnings baseline to use when calculating the price to earnings ratio. Therefore, it may be more appropriate to use the