profitability ratios

What Are Profitability Ratios And Do They Matter?

What Are Profitability Ratios? Companies today produce a tremendous amount of revenue, and consequently expenses. Profitability ratios express these numbers in a simple and easily...
net present value

Everything You Need To Know About Net Present Value

Net Present Value: Explained Management's main job is to create value for shareholders. How do they know if a new project will create or destroy...
best stoks under 10

Should You Average Down On Your Trades?

What Does The Term Average Down Mean In Trading? The term averaging down in  stock trading is the act of buying more shares to improve...
simple interest

What Is Simple Interest? Find Out Now!

Simple interest exists in most short-term loans. such as a car loan. The payment calculation varies from a compound interest loan. Understanding the difference...
monopolistic market

What Is A monopoly market And Do They Exist Today?

A monopolistic market or monopoly market  is significant for several reasons, one being it is so rare. In the past, companies experienced vast profits...
finviz stock screener

How To Use Finviz Stock Screener

The Finviz stock screener is currently regarded as the best by most traders. Despite its popularity, some traders still don’t know how to use...
accounts receivable turnover

How Do Companies Use Accounts Receivable Turnover?

Accounts Receivable Turnover: Explained Like banks, companies extend credit to consumers. This allows for the immediate purchase of goods with payment in the future. Accounts...
dividend yield

Dividend Yield Explained

If you're interested in receiving passive income from the stock market, then dividend stocks might be the right choice. To attract investors some companies...
operating profit

Everything You Need To Know About Operating Income

Operating Income: Explained Analysts and investors measure companies in various ways, many relating to the amount of profit produced in a given time. Operating income...
cash conversion cycle

The Cash Conversion Cycle: Everything You Need To Know

Cash Conversion Cycle: Explained The cash conversion cycle estimates the time is takes for cash to flow through a company. Sales are the beating heart...
buy and sell stocks

What Is ROI or Return On Investment?

What Is ROI? The return on investment (ROI) is a ratio that measures the income earned on the invested capital. Return on investment is often...
how to day trade

What Is RSI And How Exactly Should You Use It!

What Is RSI? RSI stands for relative strength index, it's a technical analysis indicator that traders use to gauge momentum and if a stock is...
purchasing power

What Is Purchasing Power? Is You’re Money Dissapearing?

Imagine if you earned the same salary today but lived in the time of your grandparents. There's a good chance that you would be...
10-K

Explaining The 10-K Report – What You Need To Know

Sophisticated investors know their way around the 10-K report. It is a document released annually by companies to shareholders. Furthermore, the format is typically...
limit order

How Do Profitable Traders Use Limit Orders?

Limit Orders: Explained Order types are an edge that trades use in the market. A limit order guarantee trade execution at predetermined prices. This mitigates...
income statement

Everything You Need To Know About The Income Statement

Income Statement Explained Without audited financial statements, how can investors know the health of their investment? The income statement is an integral document detailing how...
when to sell stocks

How to Know When to Sell Stocks

Making money in the stock market involves two critical actions; buying and selling. Timing those decisions is the key to successful trading, however, it's...
day trading stocks premarket volume

How To Use MACD to Trade Stocks

How To Use MACD Millions of traders use the MACD indicator to time their entrance and exit points. It's a favorite among swing traders because...
Buying and Selling Stocks

What Is Yield and How To Calculate It

What Is Yield Yield is the returned income on an investment. This typically refers to income generated from interest or dividends. For the most part,...
Current Ratio

Here’s How To Use Current Ratio To Evaluate Companies

Investors and analysts use certain accounting measures in measuring the risk of companies. Financial statements are sometimes convoluted, or even too in depth for...
gross profit

Here’s Why You Need To Care About Gross Profit

Income statements show gross profits at the very top of the page. That's why you often hear gross earnings referred to as "top-line earnings". ...
bull vs bear blog logo

Bullish vs Bearish – Trading Terms Explained

You've probably heard the terms before on CNBC but, if you're a new investor, you might not know what they mean. However, Wall Street...
gross profit margin

What Does The Gross Profit Margin Tell You?

Gross Profit Margin: Explained Like many other financial ratios, gross profit margin helps determine the underlying health of a company. However, this metric has immediate...
Shareholder's Equity

What Does Shareholder’s Equity Mean?

Shareholder's Equity (SE) is a financial metric used by analysts to determine the health of a company. Accountants estimate the value of the company...
how to trade penny stocks banner image

How To Trade Penny Stocks Without Paying Fees

It takes a lot of hard work to be a successful penny stock trader. If you’re new to trading, you probably don’t know how...
weighted average cost of captital

Here’s How To Use Weighted Average Cost Of Capital (WACC)

The weighted average cost of capital (WACC) is an umbrella measure of risk, valuation, and expected return. Often misunderstood, this valuable metric provides tremendous...
cramer stock picks

Moving Averages – What You Need To Know

Simple Moving Average A moving average is primarily used as an indicator to gauge the momentum and trend for a stock, bond, commodity, or currency. A...
Conflict Theory

Is Conflict Theory Still Relevant In Today’s Economy?

Conflict theory is an age old phenomenon that some believe still rules culture today. Regardless of opinion, how can one position themselves for success...
cyclical unemployment

Will Cyclical Unemployment Affect You In The Future?

Cyclical Unemployment: Explained Business cycles are an unshakable part of world economies. Cyclical unemployment trends repeat over time and affect everyone in the workplace. What Is...
payout ratio

How Can The Payout Ratio Put More Money In Your Pocket?

Payout Ratio: Explained As a shareholder, ever wonder how much of the company's income returns to you? The payout ratio shows precisely that. Investors use...
bull runs

What Is A Bull Market And How To Spot One

Bull Market A bull market is a financial term to used to express when the price of a group of stocks, bonds, currencies or commodities...
Free Cash Flow

What Is Free Cash Flow And How To Use It To Evaluate Stocks

Free Cash Flow (FCF) Defined Free Cash Flow or FCF is another measure of a company's financial performance. Operating cash flow minus capital expenditures results...
blo-banner- invest-penny

How To Invest in Penny Stocks

Penny stocks are just like any other stocks, but they are different in a few key areas. Trading penny stocks successfully requires a completely...
ATR

What Is ATR And How Do Traders Use It?

Financial instruments have personalities. Not in the sense that they are humble or funny, but rather the way they move. ATR or average true...
gross margin

What You Need To Know About Gross Margin

Gross margin is a financial measurement that reveals how much it costs for companies to manufacture the goods it sells. It is the most...
EBIDTA

What Is EBITDA Measure And How It Effects Stocks

What is EBITDA? EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company's financial health and earnings potential...
bear eats fish

What Is A Bear Market And What To Watch Out For

Bear Markets A bear market is a financial term used to express when the price of a group of stocks, bonds, currencies, or commodities are...
Cost of capital

Cost Of Capital And What It Means For Investors

New business ventures ultimately grow companies and provide shareholders a return on their investment. For this reason, financing decisions make or break a company's...
Types of IRA

What Is An IRA And Should You Have One?

IRA Explained IRA stands for Individual Retirement Account and is a way for investors to save for retirement in a tax-efficient way. Many different tools...
best day trading stocks

6 Secrets to Finding the Best Day Trading Stocks

Day Trading Stocks: Top 5 Tips Day trading can be intimidating for many investors, but finding quality day trading stocks isn't quite as stressful. If...
equity multiplier

How Does The Equity Multiplier Measure Risk Of An Investment?

Equity Multiplier: Explained Like other financial leverage ratios, the equity multiplier measures asset financing practices. However, this measure offers insight into future earnings. What Is The...
options trading strategies

What Is Volatility And Why Does It Matter

What Is Volatility In The Market Mean? Actual volatility is the measure of the amount of randomness in an underlying asset at any point in...
APR

What Is APR And How It Affects You

Understanding APR APR stands for Annual Percentage Rate and is the amount the borrower is charged yearly over the term of the loan. Its most...
retained earnings

What Does Retained Earnings Tell You About A Company?

Management decides how to spend surplus income in a number of ways. Retained earnings shows investors how their profits drive future growth of the...
stop loss

Stop Loss Orders: What Are They and How to Use Them

Stop-loss orders are an important tool in any trader's toolbox. When used correctly, stop-losses can help you protect yourself from losses and limit downside...
earnings before interest and taxes

What Does Earnings Before Interest And Taxes Tell You?

Earnings Before Interest and Taxes: Explained Analysts use different methods of evaluating company performance. Earnings before interest and taxes (EBIT) is an accounting measure that...
IRR

What Is IRR And How Do Companies Use It?

Investing: What is IRR? Management's main goal is creating shareholder value. Achieving this requires capital budgeting decisions that give positive expected returns, also known as...
Can You Short on Robinhood

Can You Short on Robinhood?

Robinhood is one of the most popular stock trading apps on the market. However, many Robinhood users are new to trading. If you're a...
best blue chip stocks

What Is TTM And How Can You Use It?

TTM stands for trailing twelve months. It's used to represent the performance of company. That said, TTM is calculated manually by adding the last four...
Net Income Formula

What Exactly Is The Net Income Formula?

Net income - also known as net earnings - tells investors how much income a company generated over a given period. In order to...
market order

What Are Market Orders And Should You Be Using Them?

Market Order: Explained Different order execution types exist in the market. This is to compensate for different trading styles. Often the cheapest is a market...
proxy vote

How Does A Proxy Vote Impact Shareholders?

Individuals own stock for a variety of reasons, most notably to accumulate wealth. Owning stock gives investors partial ownership of a company, which comes...
Gross Income

Gross Income and Taxes: A Complete Guide

What Is Gross Income? Receiving a paycheck is great, but how does one measure their salary income versus what they take home? Gross income measures...
buying and selling stocks

What Is P/E Ratio And Should You Care?

What Is "P/E Ratio" The P/E ratio is the ratio of the current stock price to last year's earnings. It is also known as the...
How to buy otc stocks

How To Buy OTC Stocks In Four Simple Steps

Over-the-counter stocks are don't trade on major exchanges like the NYSE and NASDAQ, so accessing OTC stocks can be more difficult. However, once you...
Inventory Turnover

What Is Inventory Turnover And Should You Be Using It?

What Is Inventory Turnover? A company sells products to its costumers in hopes of turning a profit, this is business 101. However, what if the...
mutual funds newspaper

Are Mutual Funds Still A Thing?

More than $49 trillion in assets are kept in global regulated open-end funds, according to data from the Investment Company Institute. That said, roughly...
leverage ratio

How To Use Leverage Ratios In Financial Analysis

A leverage ratio is a simple measure of a company that tells a complex story. One cannot properly evaluate a firm without it. What Is...
day trading stock dork

What Is Volume And Why Does It Matter

What Is Volume And Why It Matters Volume is the number of shares traded in a stock or ETF during a given period of time. Examples...
retained earnings formula

What Is The Retained Earnings Formula?

As an investor, knowing terms related to the investment world is essential as it helps you understand what companies are up to. One such...
Pattern Day Trader

What Does Pattern Day Trader Mean?

Pattern Day Trader is a FINRA designation for participants in the stock market. The regulatory body differentiates frequent trading activities by professionals apart from...
what are penny stocks blog banner

What Are Penny Stocks and Should You Buy Them?

If you're just getting into trading, you've probably heard a lot of talk about penny stocks. However, the name is a bit of a...
debt to equity ratio

Debt To Equity Ratio: Here’s What You Need To Know

Debt to Equity Ratio: Explained Leverage is a necessary yet risky aspect of corporate structure. For this reason, analysts and investors pay close to attention...
ETF vs stock

ETF vs. Stock: What’s the Difference?

ETFs and stocks have very similar attributes. Unlike mutual funds or other financial instruments, ETFs and stocks can easily be liquidated and traded. However,...
profit margin example

How Profit Margin Impacts Stock Moves

Analysts and investors can get a better grip on the financial health of a company by reading its quarterly and annual earnings statements. The profit...
oligopoly

What Is An Oligopoly And Does It Affect You?

Oligopoly: Explained Before entering a business space, one measures risk and competition. An oligopoly offers tremendous upside potential with limited competition. What Is An Oligopoly? Unlike a...