Category Archives: Investing – Stock Fundamentals

MASTERCLASS Investment – What is the Quick Ratio and how to calculate Quick Ratio

One helpful ratio for business financial health check, is the Quick Ratio formula – it is an indicator of a company’s short-term liquidity position and measures a company’s ability to meet its short-term obligations with its most liquid assets. (Usually within 3 months or … Continue reading

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MASTERCLASS Investment – Interest Coverage Ratio – How it helps to analyse a company for investing

The interest coverage ratio, (also known as interest cover or times interest earned) tells us how many times the profit/earnings  of a  company covers its total interest-payment expense bill. The formula is calculated by dividing EBIT (earnings before interest and … Continue reading

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MASTERCLASS Investment – What is PEG ratio in stocks – Price Earning Growth Ratio?

In our previous Masterclass we covered the PE ratio – Price to Earnings Ratio and how it works. A variation of PE is the growth of the PE – ie PEG. This takes into account the stock’s value (PE) while … Continue reading

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MASTERCLASS Investment – What is EPS – Earnings Per Share Ratio?

Earnings Per Share (EPS) is a measure of the company profit compared to the shares of its common stock. The result serves as an indicator of a company’s profitability. It is common for a company to report EPS that is … Continue reading

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MASTERCLASS Investment – PE – What is Price to Earnings Ratio and how do you use Price to Earnings Ratio

What is Price to Earnings ratio? – The PE of a stock (Price to Earnings Ratio) is a measure or ratio (one figure divided by another) using a company’s current share price compared to its earnings per share, also known … Continue reading

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MASTERCLASS Investment – What is Return on Assets (ROA) – what it means and how to calculate

Return on Assets (ROA), is a ratio (which means one figure divided by another) measuring the profitability (return) as a percentage of the operating assets – it means we are comparing profit to assets. ROA is an indication of a … Continue reading

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MASTERCLASS Investment – ROC – Why Return on Capital Employed is Important

The formula (or ratio) for Return on Capital (ROC) is similar to Return on Equity (ROE) but ROC takes into account long-term debt. We wrote about this HERE. An investor looking for long term investments should consider quality, as well … Continue reading

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