Net Current Asset Value Per Share (NCAVPS).

Net current asset value per share (NCAVPS) is a metric used by some investors to help identify undervalued companies. It is calculated by subtracting a company’s total liabilities from its current assets and then dividing by the number of shares outstanding. The thinking behind this metric is that a company with a high NCAVPS is … Read more

Stockholders’ Equity: What It Is, How To Calculate It, Examples.

What is Stockholders’ Equity? Stockholders’ equity is the portion of a company’s assets that belongs to the shareholders. It can be calculated by subtracting the company’s liabilities from its assets. Examples of Stockholders’ Equity Some examples of items that would be included in stockholders’ equity are common stock, paid-in capital, and retained earnings. Do shareholders … Read more

What Is Autocorrelation?

Autocorrelation is the correlation between a given time series and a lagged version of itself. In other words, it is the degree to which a time series is linearly related to itself over time. There are a number of ways to measure autocorrelation. The most common is the Pearson correlation coefficient, which measures the linear … Read more

Different Opinions on Market Efficiency and Examples.

Market Efficiency: Differing Opinions and Examples What is market inefficiency example? A market inefficiency is when the market price of a security does not perfectly reflect all available information about that security. This can happen for a variety of reasons, but some common examples include: -Lack of information: If there is limited information available about … Read more

How the Expanded Accounting Equation Works.

The Expanded Accounting Equation is a tool used in Fundamental Analysis to help forecast a company’s future financial performance. The equation is used to measure a company’s financial health by taking into account all of its liabilities and assets, both current and long-term. The equation is also used to calculate a company’s equity and to … Read more

What Is a Capital Reserve?

A capital reserve is a portion of a company’s earnings that is set aside for future use. The funds in a capital reserve can be used to finance expansion, pay dividends, or repurchase shares. A company may also use its capital reserve to make acquisitions or to fund research and development. What is reserve capital … Read more

Reading the Degree of Financial Leverage.

The degree of financial leverage ratio measures the percentage of a company’s assets that are financed by debt. This ratio is also known as the debt-to-assets ratio. A higher degree of financial leverage ratio indicates that a greater portion of the company’s assets are financed by debt. This can be a risky proposition for investors, … Read more