Determinants of Supply: Key Factors Explained with Examples
The determinants of supply are crucial in economics, forming the foundation of functioning markets and the economy. Key determinants of pricing, labor, taxes, competition, suppliers, and technology cause the supply of goods and services to change.
Economic Value Added (EVA) Explained: Shareholder Value
Economic value added, or EVA is a sophisticated measure for assessing a company's financial performance and creating shareholder wealth by measuring the residual income after deducting the cost of capital.
Inventory to Sales Ratio Explained: Optimizing Stock Management
Inventory to Sales Ratio is a crucial financial metric indicating the relationship between a company's inventory and sales volume. It sheds light on the efficiency of inventory management and plays a significant role in assessing performance against industry benchmarks.
Income Elasticity Explained: Consumer Behavior in Economics
Income elasticity of demand is an economic measure showing how demand responds to consumer income changes. This metric helps businesses and economists understand how economic changes affect the demand for goods.
How Financial Leverage Works! Using Debt to Amplify Returns
Financial leverage refers to using borrowed funds to increase the potential return on investment. It magnifies potential gains and losses, vital to a company's capital structure.
Cash on Hand Explained: Cash is King for Businesses
Cash on Hand is a financial metric indicating the amount of liquid capital available to an individual or business. For businesses, it includes physical currency, funds in bank accounts, and liquid assets readily convertible to cash.
Stock Market Beginner’s Guide [2024 Elite Investor Edition]
Understanding stock market basics is a crucial first step for beginners. Understanding exchanges, indexes, buy-and-hold, and diversification is a good start. Risks, rewards, and goals are key to a solid foundation. Finally, charts, patterns, and indicators are the investor's toolbox.
Finviz Stock Screener Review 2024: Free vs. Elite Tested
Our Finviz review testing reveals an effective free stock screener, fast market heatmaps, and stock chart pattern recognition. Finviz Elite includes real-time data, interactive charts, and backtesting for a competitive price.
4 Best Value Investing Stock Screeners of 2024
The best Benjamin Graham & Warren Buffett stock screeners for value investing are Stock Rover, Portfolio 123, TradingView, and TC2000.
8 Best Free Stock Market Heatmaps Tested 2024
Our research shows the best stock market heatmaps are TradingView, Finviz, Finscreener, and Stock Rover. TradingView is visually stunning and covers all stock, forex, and crypto exchanges.
What Does Over-Leveraged in Finance or Investing Mean?
Over-leverage is using excessive debt to finance investments or business operations, leading to excessive risk. Financial risk increases as the level of debt exceeds the ability to generate sufficient returns to cover the interest payments and principal repayment obligations.
PEG Ratio Explained: Finding Growth at a Reasonable Price
The Price/Earnings to Growth (PEG) ratio helps investors find growth at a reasonable price. The PEG ratio is an incredibly valuable metric calculated by dividing the Price-to-Earnings (P/E) ratio by the company's earnings growth rate.
Price Floors in Economics: Understanding Minimum Prices
A price floor is a government-imposed limit on how low a price can be charged for a product, service, or commodity. This is designed to ensure the price stays high enough to protect the interests of producers, often at a point above the natural market equilibrium where supply equals demand.
Fixed Charge Coverage Ratio: Key Insights for Investors
FCCR is a financial metric determining how well a business can cover its fixed charges with its operating income. It is calculated by dividing Earnings Before Interest and Taxes (EBIT) by fixed charges. Fixed charges typically include expenses such as interest expense and lease payments.
Operating Profit Margin: Formula & Tips for Investors
Operating Profit Margin, often represented as a ratio or percentage, reflects the proportion of revenue after accounting for the costs and expenses associated with a company's primary operations.
Payout Ratio: Understanding Dividend Income Sustainability
The payout ratio, also known as the dividend payout ratio, is a critical financial metric that investors use to evaluate the sustainability of a company's dividend payments.
Total Asset Turnover: Understanding Business Efficiency
Total asset turnover is a financial metric used to assess a company's efficiency in using its assets to generate sales. It is a vital ratio for investors and analysts seeking to understand how well a company utilizes its asset base to produce revenue.
Times Interest Earned Ratio: Explaining Solvency & Risk
The Times Interest Earned Ratio, or TIE, is a financial metric for gauging a company's ability to settle its interest obligations. By assessing the number of times a company could theoretically cover its interest payments with its current pretax earnings, it offers a clear view of financial health, particularly regarding solvency and risk.
Dupont Analysis Explained: Company Financial Performance Models
By breaking down ROE into profitability, efficiency, and leverage factors, DuPont Analysis allows investors and analysts to pinpoint the strengths and weaknesses of a firm's financial health.
Return on Average Equity (ROAE): Company Profitability Explained
The Return on Average Equity (ROAE) financial ratio measures a company's profitability by comparing its net earnings to average shareholders' equity.
Our Best Training & Strategies
Liberated Stock Trader Pro: Learn Stock Market Investing
Learn stock market investing with the complete online stock trading course by Barry D. Moore, a certified financial analyst from the International Federation of Technical Analysts (IFTA).
ETF Investing Strategy: MOSES Improves Performance & Lowers Risk
The MOSES ETF investing strategy is a powerful suite of indicators meticulously backtested over 100 years. Designed to empower you to outperform the market, it equips you with the tools to navigate major stock market crashes and unlock greater investing performance.
Our LST Strategy Beat the Stock Market’s S&P 500 By 102%...
Decades of research and testing unveiled the Liberated Stock Trader Beat the Market System. Our 9-year, backtested, and proven strategy targets 35 financially healthy high-growth stocks, producing a track record of beating the S&P 500 by 102%.