Free Cash Flow

Definition of Free Cash Flow Free Cash Flow (FCF) or Free Cash Flow to Firm (FCFF) forms a part of the working capital analysis of a firm. Working Capital …

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 …

Sharpe Ratio

What is Sharpe Ratio? Sharpe Ratio is a measurement of risk-adjusted return of a portfolio. The concept is named after William F. Sharpe of Stanford University. The ratio measures …

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 …

Dividend yield

DIVIDEND YIELD RATIO DEFINITION Common stock investments have 2 sources of return i.e. dividend and capital appreciation. The percentage return received from dividends is known as dividend yield and …

Ex-Dividend date

To understand the concept of Ex-dividend date, we need to first understand the dividend payment timeline. Once the dividend is approved by company’s board of directors, the following timeline …