Depreciation, depletion, and amortization.

. DD&A What type of expense is amortization? Amortization refers to the process of allocating the cost of an intangible asset over its useful life. Intangible assets are non-physical assets that provide economic benefits to a business, but do not have a physical form. Examples of intangible assets include patents, copyrights, and goodwill. The amortization … Read more

The Information Ratio (IR) Helps Measure Portfolio Performance.

The information ratio is a statistical measure that helps investment managers and analysts compare the performance of different portfolios. The ratio is calculated by dividing the portfolio’s return by the standard deviation of the portfolio’s returns. The higher the information ratio, the better the portfolio’s performance. A portfolio with a higher information ratio is said … Read more