Financial Analysis

This Category is dedicated to articles related to Financial Analysis to understand strenght of a business.


Equity Multiplier

What is Equity Multiplier (EM)? Equity Multiplier is a key financial metric which measures the level of debt financing in a business. In other words, equity multiplier is defined …

Defensive Interval Ratio

DEFENSIVE INTERVAL RATIO (DIR) MEANING Defensive interval ratio (DIR) is a very useful for measuring company’s liquidity position. It measures company’s ability to finance its daily cash expenses out …

Liquidity Ratios

Every organization has some level of cash requirement for keeping its operations functional. Companies that are able to meet its cash requirement from a source with minimum cost, would …

Enterprise Value

What is Enterprise Value? Enterprise Value (EV) is the measure of the total value of the company. Instead of determining firm’s value based on market capitalization only, it gives …

Contribution Margin

What is Contribution Margin? Contribution margin means the selling price minus the variable cost incurred on the product. Thus, contribution margin is the ability of the firm to cover …

P/E Ratio

P/E Ratio Meaning The price earnings ratio, often called as P/E ratio is the ratio of company’s stock price to the company’s earnings per share. It is a market …