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Decreasing net worth is cause for concern because it might signal a decrease in assets relative to liabilities. One is by purchasing assets, such as stocks or real estate, that may increase in value. Some fixed assets can count toward your net worth calculation, too, provided you can or would sell them if needed. For example, your home would count […]

Market capitalization is an important data point for making informed investment decisions, managing return expectations and building a well-balanced portfolio. This means that stocks with larger market capitalizations make up more of the index. Large-cap stocks, which include household names like Microsoft and Apple, are more stable during economic uncertainty. These corporate giants have substantial cash reserves, diverse revenue streams, […]

The number of common shares outstanding at the beginning of the period was 160 million. The earnings per share metric, often abbreviated as “EPS”, determines how much of a company’s accounting profit is attributable to each common share outstanding. Earnings per share (EPS) is a commonly used measure of a company’s profitability. In the example provided, a stock price of […]

There are variations in calculating EBIT to be aware of, like how analysts calculate EBITDA, which stands for earnings before interest, taxes, depreciation, and Amortization. This aims to show the cash flow generated from operations before accounting for cash expenses like interest as well as non-cash expenses like D&A. Adding back Depreciation and Amortisation to EBIT derives EBITDA – another […]

But increasing dividends to maintain real returns doesn’t come without challenges – to raise dividend amounts, companies need the funds to do so. This requires strategies around pricing power, cost pressures, cash flow and working capital. TrackYourDividends also offers one of the most powerful dividend screeners available. Rather than looking at just yield, you can access the proprietary dividend safety […]

Essentially, it represents the owners’ investments and any profits that have been kept in the company instead of being paid out. The main use of the debt-to-equity ratio is to determine the financial leverage and risk of a company. It displays the ratio of the value represented in shareholders’ equity to the quantity of debt a company employs to finance […]