Fundamental Analysis

The speaker discusses how to calculate the retained earnings of a company who has made an acquisition.  The simple way to determine this is to take the RE balance of the parent company and add the difference of the prior period retained earnings balance and the current period retained earnings balance.&nbsp

What are Retained Earnings?

When a company turns a net profit, they can elect to either pay it out as a dividend or take these earnings and reinvest them back into the company.  In the case of the latter, the company will record these earnings as retained earnings which will be recorded on the <

what is the Cash Conversion Cycle?

The cash conversion cycle, also known as the asset conversion cycle, is an expression of time, in days, that it takes to purchase raw materials for production, convert them into goods, sell them, and collect the accounts receivable for those sales. 

What is Working Capital?

The speaker talks through the various different methods that can be used to calculate the cost of debt within the WACC calculation.  He discusses the benefits and disadvantages of the three methods of debt valuation; coupon rate, yield to maturity, and spread to benchmark. 

The speaker covers the practical application of the weighted average cost of capital, or  WACC.  He suggests that if the cost of capital is less than the IRR of the project, the project is worth undertaking

Calculate WACC

What is Weighted Average Cost of Capital (WACC)

The speaker discusses the definition of the weighted average cost of capital (WACC).  He then covers how the WACC is calculated and mentions that it represents a blended cost of capital from all sources of funds; bonds

The speaker does a quick overview on the differences between stock price and market capitalization.  Stock price is not an accurate measure of a companies size, market cap is.  A stock might be priced very high but there may

This is a very quick video on the defintion of market capitalization. The speaker discusses how to perform the calculation and then talks through the different groups of market cap; large cap, mid cap, and small cap.

The video provides an explanation of what market cap is and how to calculate it.  Market capitalization can be calculated by multiplying the number of shares outstanding by the current price of the stock.  There are three main market cap groups; large cap, mid cap, and small cap.  Large cap stocks hav

Steve Forbes discusses how he believes that mark to market accounting has destoyed the banking and insurance industries and suggests that it should be suspended immediately.  When this happens, the market will move higher substantially. 

The speaker covers the differences between two accounting techniques, mark to model and mark to market.  The mark to model technique of accounting values securities based on a financial model that has been created.  Conversely, the mark to market technique for accounting values securites on a regular basis based

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.