Ryan Furhmann

Working capital represents a company’s ability to pay its current liabilities with its current assets. This figure gives investors an indication of the company’s short-term financial health, its capacity to clear its debts within a year, and its operational efficiency. Working Capital Formula […]

Companies that report losses are more difficult to value than those reporting consistent profits. Any metric that uses net income is nullified as an input when a company reports negative profits. Return on equity (ROE) is one such metric. However,

In 2013, the U.S. Bureau of Economic Analysis announced a change to the way it estimates gross domestic product (GDP). Going forward, it was going to include intangible assets in its calculations of investments in the economy. The change significantly

Accounts receivable turnover and inventory turnover are two important ratios used by analysts to measure how efficiently a firm is paying its bills, collecting cash from customers, and turning inventory into sales. These two ratios appear in the current assets

When it comes to investing, deciding when to buy a stock can sometimes be easier than knowing when to sell it. Buy recommendations are prevalent and stem from a wide variety of sources, including investment newsletters, analysts, stockbrokers, and investment

Corporations dream of out-competing their rivals and reigning supreme in their respective industries. Some companies achieve this level of dominance, eventually creating a monopoly or near-monopoly conditions that allow them to earn outsized profits and keep their customers eating out

The cash flow statement is one of the most important but often overlooked components of a firm’s financial statements. It shows analysts, investors, credit providers, and auditors the sources and uses of a company’s cash. It’s important to consider each

Extraordinary Items vs. Nonrecurring Items: An Overview Financial analysts and investors pore over the numbers in a company’s financial reports in an attempt to make reasonably accurate predictions of its future performance. To do so, they need to know which