EPS (earnings per share) is an important unit of measurement for investors to gauge a company’s profitability. It indicates a company’s profitability against its peers on a per-share basis. One can calculate EPS on a quarterly or annual basis by dividing a company’s net income by its total number of outstanding shares. Now, let’s dive […]
Earnings Per Share (EPS) — Meaning and Formula Read More »
Capital structure refers to a combination of debt and equity that a company utilises to purchase assets and finance overall operations. Organisations can fund their activities via equity financing, debt financing, vendor financing and preference share capital. The composition of debt and equity in the capital structure of a company represents its financial position and
Capital Structure: Meaning, Concept, and Importance Read More »
Capital budgeting refers to the process of evaluating potential risks and expected returns of a project. It helps businesses to establish a quantitative view of every proposed investment, which enables them to make rational decisions. Typically, such investments pertain to long-term assets that can potentially increase an organization’s profitability. Before knowing the different capital budgeting
Capital Budgeting: Process, Techniques, and Importance Read More »
The core goal of investing money is to generate value, whether in stocks or other financial assets such as bonds. In investing, two things are imperative: i) return on investment and ii) risk involved. One can not exist without the other; if you invest in the equity market, you are prone to market fluctuations daily,
All you need to know about Capital Asset Pricing Model (CAPM) Read More »