Financial statements provide a snapshot of a corporation’s financial health at a particular point in time, giving insight into its performance, operations, cash flow, and overall conditions. Shareholders need financial statements to make informed decisions about their equity investments, especially […]
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What Is a Liquidity Ratio? A liquidity ratio is a measurement of a company’s ability to pay off its current debts with its current assets. There are various types of liquidity ratios, including the current ratio and the quick ratio.
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The price-to-sales (P/S) ratio is a profitability analysis tool used to compare companies and discover undervalued securities. P/S ratios can vary significantly between industries and companies so it’s important to view a company’s P/S ratio in comparison to similar companies
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An increase in the total capital stock that shows on a company’s balance sheet is usually bad news for stockholders. It represents the issuance of additional stock shares which dilute the value of investors’ existing shares. The additional capital stock
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What Are Key Financial Ratios for Pharma? Pharmaceutical companies have been top performers in the healthcare sector in an era of aging populations, rising healthcare costs, and the ongoing development of new and extremely profitable medicines. Investors seeking to invest
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Market Capitalization vs. Equity: An Overview Two of the most common ways of assessing a company’s value are market capitalization and equity (also known as shareholder equity). Each term describes a different way of looking at a company’s value. It
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You can’t use your 401(k) account as collateral for a loan. Internal Revenue Service (IRS) regulations prohibit it. However, you may be able to borrow money from your 401(k) account. You’ll be borrowing money from yourself, and paying it back
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What Is Declaring a Dividend? Companies often pay out a portion of their profits as dividends to the shareholders. Dividend payouts are a way to provide shareholders with a return on their investment. The board of directors issues a declaration stating
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The Herfindahl-Hirschman Index (HHI) is a measure of market concentration in an industry. It measures the market concentration of the 50 largest companies in a particular industry to determine if that industry should be considered competitive or as close to
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Who Rules the Global Beverage Industry? Just two corporate powerhouses dominate the global market for soft drinks: PepsiCo. Inc. (PEP) and The Coca-Cola Corp. (KO). Coca-Cola has been the market leader for decades. It remains the world’s most valuable soft
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