What is Current Ratio? How to calculate?
What is Current Ratio?
The current ratio is a method to measure about the current company short term financial strength. It’s most popular gauge of a company’s ability to pay its short-term bills. A company’s current ration of 2:1 or exceeds 1 is able to deal with some unexpected expenses, opportunities and short term obligation.
For Example,
A [...]
What is Cash Flow Per Share? How to calculate?
What is Cash Flow Per Share
It means current company’s cash flow on hand. It’s always use to measure of a company’s financial strength. However, some profitable companies may not have strong cash flow, it’s because the business is sell their goods on credit.
For Example,
The COMP-A company has $3,000,000 cash flow and total shares [...]
What is Return On Investment Capital (ROIC)? How to Calculate?
What is ROIC ?
ROIC is stand for Return On Invested Capital. It’s always used to calculate how well a company efficiency at utilizing or allocating company capital to gain profit or generate returns.
Return on Investment (ROI), Return on Capital (ROC) and Return on Invested Capital (ROIC) are used interchangeably.
For Example,
I opened a company call [...]
Where to find Asia Region Stock Index ?
Is there a place to visit all the Asia Region stock index together, which include Hong Kong’s HANG SENG INDEX, China’s SHANGHAI SE COMPOSITE IX, Malaysia’s KUALA LUMPUR COMP INDEX and so on?
Bloomberg provided a very good platform for the investors who want to have all the Asia Region stock index in a single place. [...]
What is Value Investing?
Everything has its value. For instance, you would not want to buy a brand new iPhone 8G which is selling with price of $10000 as most likely the gadget is overpriced. You may think an iPhone 8G may cost only $1000. That’s the VALUE you put on it. One month later, the shop is on [...]
What is weight average shares outstanding? How do calculate?
What is Weight Average Shares Outstanding?
It’s mean average shares company outstanding within certain period.
How to Calculate Weight Average Shares Outstanding?
It’s a little bit difficult to express in a single formula. however i will give an example to demonstrate how to calculate it.
Case Study 1
Q : “Company A” has 10 million shares outstanding at Janunary [...]
Different between Direct account and Nominee account
Stock account divide into two types – CASH/DIRECT ACCOUNT and CLIENTS COLLATERAL TRADING Account (Nominee account). When we want to open an account in any stock brokerage firm, we have to know which type of account we want to apply. I will suggest always go for direct account.
Here is the different between “cash / direct [...]
What is Earnings Per Share – (EPS)? How to Calculate?
What is EPS
EPS is stand for “Earnings Per Share”
Think it as simple, Earnings per share (EPS) is how much i earn if i buy one unit of share. If “company A” EPS is $1, if i brought one unit of “company A” share, i will earn $1, simple enough. In Formal, EPS are the earnings [...]
How to find company Annual Report?
We always need to study company Annual Report before make any decision. However where to find company Annual Report? A lot websites provide company annual report and company financial information as paid service, yes we can buy it for time saving. However i prefer find it myself to make study and research.
Where to find Annual [...]
What is Price Earning Ratio (P/E)? How to Calculate?
What is P/E?
P/E is stand for “Price Earning Ratio”,
Think it as simple, P/E is how many years you take to recover your investment. If P/E = 5, it means you need 5 years to turn your investment in profit.
For Example,
I opened a company call COMP-A, every year COMP-A will paid investors $10. How much [...]
