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What Is Going to Happen with Inflation?

By Valuation Master Class Student

Many forces at work impact inflation. There are current trends that cause both inflationary and deflationary measures. Whether we’ll see inflation or deflation in the future depends on which of these forces dominate.

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what is du pont analysis

What Is Du Pont Analysis?

By Andrew Stotz

The Du Pont analysis was created by the Du Pont corporation and is similar to the Return on Equity (ROE) but more accurate.

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what is return on equity

What Is Return On Equity?

By Andrew Stotz

ROE is another method to measure the profitability of a company. The ROE divides the net income of a company with the shareholder’s equity.

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what is return on invested capital

What Is Return On Invested Capital?

By Andrew Stotz

Return on invested capital is a method of calculation in which you measure the performance of a company in terms of profitability.

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what is ebit return on assets

What Is EBIT Return On Assets?

By Andrew Stotz

EBIT return on asset measures the firm’s earnings before interest and tax with respect to the firm’s total asset. The main focus on this ratio is the income and the total asset.

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what is ebit margin

What Is EBIT Margin?

By Andrew Stotz

EBIT margin stands for Earning Before Interest and Tax margin. This margin helps stakeholders understand the cost of running the firms as well as profitability.

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what is gross profit margin

What Is Gross Profit Margin?

By Andrew Stotz

The gross profit margin compares the difference between the revenue and cost of goods sold, against revenue. It is represented in the form of a percentage and is used to evaluate the company’s financial health.

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what is cash conversion cycle

What Is Cash Conversion Cycle?

By Andrew Stotz

The amount of time it takes a firm to convert its inventory into cash is known as the cash conversion cycle. In other words, it is the time taken for firms to convert their resources into cash.

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what is payables deferral

What Is Payables Deferral?

By Andrew Stotz

The period of time a firm takes to pay back their suppliers or creditors for their material purchases is known as payable deferral.

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what is receivables collection

What Is Receivables Collection?

By Andrew Stotz

The receivable collection period is a period when a firm receives the amount owed by their customers.

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