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Educational Library
Type of Securities Investment Strategies Fundamental Analysis Technical Analysis
Understanding Financial Statements Income Statement Analysis Balance Sheet Analysis Cash Flow Analysis Shareholders' Equity Analysis Ratios and Definitions


Ratios and Definitions

 - Market Price Analysis

 - Profitability Analysis

 - Liquidity Analysis

 - Cash Flow Analysis

 - Capital – Leverage Analysis

 - Activity Analysis


 

 

 


Profitability Analysis
Measures financial performance

  • Return on Equity Ratio – Net income divided by average stockholders’ equity.
     

  • ROE DuPont Formula Ratio
    Net income divided by average stockholders’ equity  =  (net income / sales)  times  (sales / total assets) times  (total assets / total equity).
     

  • Return on Assets Ratio – Net income divided by average total assets.
     

  • Gross Profit Margin – Gross profit divided by sales.
     

  • Operating Profit Margin – Operating profit divided by sales.
     

  • Net Profit Margin – Net income divided by sales.

 

 

 

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| Election Cycle Theory  | Dow Dividend Theory | Penny Stocks | IPOs | Dollar Cost Averaging | Drips | Risk Tolerance  |
| Introduction to Fundamental Analysis | Income Statement Analysis | Balance Sheet Analysis | Cash Flow Analysis |
| Shareholders’ Equity Analysis | Ratios and Definitions | Technical Analysis | Type of Charts | Chart Reading | Oscillators |
| Chart Overlays | Chart Patterns | Elliot Wave Theory | Spinella Heart Rate Theory | Fibonacci | The Envelope System |
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