EPS: What It Means and How to Calculate It. Is earnings per share on the balance sheet? No, earnings per share (EPS) is not on the balance sheet. EPS is a financial ratio that is calculated by dividing a company’s net income by the number of shares outstanding. Is EPS a profitability ratio? EPS is … Read more
Return on average equity (ROAE) is a financial ratio that measures the profitability of a company in relation to the equity of its shareholders. The ratio is calculated by dividing the company’s net income by its average shareholder equity. ROAE is a good indicator of how well a company is using the funds that have … Read more
The rolling EPS definition is the earnings per share for a company over a rolling period of time. The rolling period is typically four quarters, but can be any length of time. The rolling EPS is a measure of a company’s earnings power over time. The rolling EPS is calculated by taking the earnings per … Read more
What is ROI and how do you calculate it? What is ROI formula in Excel? The ROI formula in Excel is =FV/PV. The present value (PV) is the amount of money that you have today. The future value (FV) is the amount of money that you will have in the future. The ROI is the … Read more
A KPI, or key performance indicator, is a numerical value used to measure progress or success in achieving a specific goal. In business, KPIs are often used to track progress towards important objectives such as sales targets, profitability goals, or customer satisfaction levels. There are many different types of KPIs that can be used to … Read more
ROACE is a measure of a company’s profitability that takes into account both its return on capital and its capital employed. It is calculated by dividing a company’s operating profit by its average capital employed. ROACE is a useful metric for evaluating a company’s overall profitability. A high ROACE indicates that a company is generating … Read more
What is Gross Margin? Gross margin is the difference between a company’s revenue and the cost of goods sold. It is a good indicator of a company’s financial health and is often used to compare companies in the same industry. To calculate gross margin, simply subtract the cost of goods sold from the total revenue. … Read more
A multiple definition is a ratio that can be used to measure different aspects of a company’s financial performance. For example, the price-to-earnings ratio (P/E ratio) can be used to measure a company’s share price relative to its earnings per share. The P/E ratio can be interpreted in different ways, depending on the investor’s perspective. … Read more
The cash EPS ratio measures the amount of cash that a company generates per share. This ratio is useful in evaluating a company’s ability to generate cash flow and its overall financial health. To calculate cash EPS, divide the company’s total cash flow from operations by the number of shares outstanding. For example, if a … Read more
The variable cost ratio is a financial ratio that measures the proportion of a company’s variable costs to its total costs. Variable costs are those costs that vary with the level of output, such as raw materials and labor. The variable cost ratio is used to assess a company’s cost structure and to help make … Read more
