Gross sales refers to the total value of all goods and services sold by a company during a given period, before any deductions are made. Net sales, on the other hand, is the total value of all goods and services sold by a company during a given period, after deductions for returns, allowances, and discounts. … Read more
Adjusted Present Value (APV): Overview, Formula, and Example. The original title discusses the concept of adjusted present value and provides an overview of the formula and an example. The rephrased title simply states the adjusted present value and provides an overview of the formula and an example. What is risk adjusted discount rate? The Risk-adjusted … Read more
A company’s earnings are the profits that it generates during a particular period of time, typically one quarter or one year. A company’s earnings can be divided into two main categories: operating earnings and net earnings. Operating earnings are the profits generated from a company’s core business activities. This includes revenue from the sale of … Read more
Model risk occurs in finance when a model used to make financial decisions is inaccurate or does not reflect reality. This can lead to losses for the financial institution or individual investors. Model risk is often hard to identify and can be caused by a number of factors, including incorrect assumptions, data errors, and changes … Read more
Future Value: Definition, Formula, How to Calculate, Example, and Uses. What are the features of future value? The future value of an asset is the value that the asset is expected to reach at some point in the future. The future value is often used as a measure of an asset’s potential return. There are … Read more
A league table is a table that shows how a group of companies or organizations are performing in relation to each other. It is a way of ranking companies or organizations based on their performance. There are many different ways to create a league table. The most common way is to use financial data, such … Read more
Financial performance refers to how well a company uses its financial resources to generate profits and grow its business. Why financial performance analysis is important? Financial performance analysis is important for a variety of reasons. It can help investors evaluate a company’s overall financial health, identify trends and assess future risks. It can also provide … Read more
Markov analysis is a tool used by financial analysts to predict future prices of assets based on past price movements. The technique is named after Andrey Markov, a Russian mathematician who developed the theory behind it. Markov analysis is based on the assumption that future price movements of an asset will be based on its … Read more
Stock analysis is the process of evaluating a company’s stock to determine its suitability for investment. The analysis typically includes an assessment of the company’s financial statements, as well as an analysis of its business model and competitive advantages. There are a number of different approaches that can be taken when conducting stock analysis, but … Read more
Normalized earnings is a term used to describe a company’s earnings that have been adjusted to remove the effects of one-time or non-recurring items. This gives investors a more accurate picture of a company’s true earnings power. What is normalized FCF? Normalized FCF is a measure of a company’s free cash flow that has been … Read more
