Articles Index

An Introduction to Capital Structure
A company's capital structure is one of the most important decisions management has to make because it influences everything from the firm's risk profile to the financial ratios such as return on equity and interest coverage. In this resources, we examine why capital structure matters and the components that make up the capital structure of any company, no matter how large or small.

Price to Cash Flow Ratio
Some investors prefer to focus on a financial ratio known the price to cash flow ratio instead of the more famous price to earnings ratio (or p/e ratio for short). Why do they prefer the price to cash flow ratio and why is it better for some companies and industry than its more famous counterpart? Sit back, relax, and grab a cup of coffee because you're about to learn everything you ever wanted to know about why it is more important than the price to earnings ratio.

The 5 Categories of Financial Ratios
There are five categories of financial ratios into which most calculations fall. Here, we explain what they are to help you understand how to organize your own financial analysis when valuing a stock or bond.

Using the PEG Ratio to Find Hidden Stock Gems
The PEG ratio is a modified form of the price to earnings ratio and can help you factor in the underlying growth in a company's earnings per share to determine its relative value. Many of the most successful investors including Peter Lynch use the PEG ratio to help value stocks.

Return on Equity - The DuPont Model
Return on equity, or ROE, is made up of three important components under the DuPont model. Discover how to calculate return on equity using these three components in this article.

Enterprise Value
Enterprise value is the takeover value of a company. Enterprise value is calculated by adding a corporation’s market capitalization, preferred stock, and outstanding debt together and then subtracting out the cash and cash equivalents