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 …
Cash Conversion Cycle
Meaning of Cash Conversion Cycle Cash Conversion Cycle or CCC is the number of days that a business entity takes to convert its input resources into liquid cash flow. …
Capital Gearing Ratio
For understanding the meaning of Capital Gearing Ratio, we need to first understand the meaning of Capital Gearing. So, let us see what Capital Gearing is.
Operating Margin Ratio
What is Operating Margin Ratio? Operating margin ratio is the ratio of operating income to the revenue of the business. It highlights the operating income of the business as …
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 …
Dividend per share (DPS)
DIVIDEND PER SHARE DEFINITION Dividend per share (DPS) is the total dividend declared for every common share outstanding. Just like, we find earning per share (EPS) because per share …
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 …