What Is A Profit And Loss Statement? The profit & loss statement, or income statement, is one of the main financial statements of a business that shows its profit or loss for a specific period. Public companies operating in the United States are required by law to provide their profit and loss statement at the end of every quarter and fiscal year. The P&L statement starts with a company's revenue and ends with its net profit after subtracting operating and non-operating expenses, such as cost of goods sold or SG&A (Selling & Administrative expenses). Having a complete understa ..read more

Depreciation can be explained well according to accounting language as a method used or allowing companies and organizations to write off or decrease a documented cost of an asset systematically over a given time. It is normally used to account for the reduction in value, which is the difference in initial cost and the accrued cost of an asset over time (Liapis et al., 2015) In this article Calculating depreciation Depreciation methods Straight-line depreciation method Declining balance depreciation method Double declining balance depreciation method Units of production depreciation rate Sum ..read more

In this article What is Compound Interest? How To Calculate Compound Interest: Formula Explained Compound Interest Example Calculation The importance of the compounding frequency Simple Interest Vs. Compound Interest What is Compound Interest? Compound interest is the interest on a deposit or loan that is calculated not only on the initial principal but also on the accrued interest from prior periods. Compound interest is also known as interest on interest because the borrower has to pay interest on principal as well on previous interest. Of course, it provides a greater return on investmen ..read more

In this article Who is the CEO (Chief Executive Officer)? What does a CEO do? CEO's Roles and Responsibilities The difference between the CEO and the Chairperson of the Board How much does a CEO earn? The highest paid CEOs in the S&P500 Who is the CEO (Chief Executive Officer)? The CEO, that stands for Chief Executive Officer, is the most important executive in a corporation who has the final say on the company's most critical decisions. The CEO is also known as managing director, president, or chief executive. The Chief Executive Officer is responsible for the organization's performanc ..read more

In this article What is Shareholders’ Equity? Shareholders’ Equity Example Share Capital Retained Earnings Shareholders’ Equity Example Calculation Negative Shareholders’ Equity What is Shareholders’ Equity? By definition, Shareholders’ Equity, or Stockholders’ Equity, is the net worth of a company's shareholders after all debt has been repaid. The amount is disclosed on a firm's balance sheet and is equal to the sum of contributed capital plus retained earnings. As discussed in our balance sheet guide, the statement of financial position is known as a balance sheet because it is maintained ..read more

In this article 1# Valuation Method: DCF Analysis 2# Valuation Method: Comparable Analysis 3# Valuation Method: Dividend Discount Model 4# Valuation Method: Precedent Transaction The Football Field Chart If you are interested in learning how to value a company using different valuation methods, you are in the right place. Evaluating the intrinsic value of stocks is not an easy task, and one of the main difficulties for many analysts is choosing the correct valuation method. It's very important to master multiple valuation models to find the intrinsic value of a business. Being biased toward ..read more

In this article What is a Cash Flow Statement? Cash Flow Statement: A Real Example The Three Cash Flow Statement Sections—Cash Flow Classifications 1. Cash Flow from Operating Activities 2. Cash Flow From Investing Activities 3. Cash Flow from Financing Activities Cash Flow Statement: Direct Vs. Indirect Method Why Is Cash Flow Statement Important? What is a Cash Flow Statement? The cash flow statement, or statement of cash flows, is one of the main financial statements of a business that shows its cash expenses and gains over a specific fiscal period. Public companies operating in the Unit ..read more

In this article What Is An Income Statement? Income Statement: A Real Example Income Statement Items Multi-Step Income Statement Single Step Income Statement What Is An Income Statement? The income statement, or profit and loss statement, is one of the main financial statements of a business that shows its profit or loss for a specific period. Public companies operating in the United States are required by law to provide their income statement at the end of every quarter and fiscal year. The income statement starts with a company's revenue and ends with its net profit after subtracting oper ..read more

It is no secret that stocks are the best performing asset over the long-term. The stock market helps investors generate income, build wealth, and protect it from inflation. Like any other investment, knowing which type of stocks to invest in and which ones to steer clear of can make the difference between earning a profit and losing your life’s savings. Many novice investors are inclined to believe that penny stocks are a great way to make money in the stock market. So, what are penny stocks? Can you make money in penny stocks? In this article, we'll discuss if penny stocks are a viable asset ..read more

In this article What is WACC and What Does it Tell Us? How To Calculate WACC: Formula Explained WACC Example Calculation WACC Calculator: Free Template WACC: Sector Benchmarks What is a Good WACC? What is WACC and What Does it Tell Us? By definition, the weighted average cost of capital (WACC) is the average after-tax cost of a company's various capital sources. These include preferred stock, common stock, bonds, and long-term debt. So, as the name implies, WACC is the average rate that a company pays to finance its assets. Since almost every business needs to raise capital to grow, WACC is ..read more