Financial Analysis

How is DSCR Calculated?

Understanding DSCR Debt Service Coverage Ratio or DSCR indicates the ability of the company to service its debt obligations from earnings generated from its operations. The debt obligation includes …

How to Calculate EPS?

Understanding EPS Earnings per Share or EPS is the portion of a company’s profit that is allocated to each individual outstanding share. In this article, we will elaborate on …

Solvency Ratios

Solvency ratios are useful in measuring a company’s solvency thereby evaluating the company’s financial health. A company’s solvency is determined by how much money it has borrowed as debt …

Efficiency Ratios

Efficiency Ratios are a measure of how well a company is managing its routine affairs. Conceptually, these ratios analyze how well a company utilizes its assets & how well …

Days Sales Outstanding

What is Days Sales Outstanding (DSO)? Days sales outstanding is a financial ratio that helps in calculation of the number of days the accounts receivables remain outstanding. It is …

Negative P/E Ratio

Price-Earnings Ratio (P/E Ratio) Before taking the discussion to Negative P/E Ratio, let’s understand the concept of Price-Earnings Ratio or P/E ratio. It expresses the relationship between the price …

Operating Ratio

Operating ratios is the comparison of an operating expense to the revenue of a business. Operating expense could be any expense or a category of expenses like selling and …