Questions tagged [ratio]

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How to calculate "bang for buck" when less is better, not more

Ok let's say you have 3 products, 4lb bag costs $100 3lb bag costs $300 2lb bag costs $400 If I were asked, which product is more valuable, in the common sense, I would say, dividing dollars over lb, ...
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Understanding Days Sales Outstanding (DSO) Ratio

The definition of DSO is: Days Sales Outstanding (DSO) = Accounts Receivable (AR)/Total Credit Sales * (# of days) If you look at any finance website such as Investopedia, they will say the following: ...
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1 vote
2 answers
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Calculating put-call ratio when volume is @0

So i have to do a put-call ratio plot. However i have to decide between using open interest and volume to calculate PCR. But in our data, the volume for some put/call options are 0. Is there a way to ...
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3 votes
2 answers
177 views

Why would rising interest rates favor the company with more long-term debt?

I was reading about the debt to equity ratio on Investopedia and in third paragraph under the "Modifications to the Debt-to-Equity (D/E) Ratio" title, it says that: "If interest rates ...
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1 vote
1 answer
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Question about ROIC

I was reading a book called "Pitch the Perfect Investment" and I reached a table of data I did not understand (attached below). Can anyone explain why cost of capital is not tallied for the ...
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1 answer
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Unsure of which financial ratios to suggest inventory level

I am doing some tutorial questions on financial ratios and would appreciate some help regarding the following: I am given a few selected options on ratios to determine my answer - Liquidity - Current ...
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1 answer
854 views

What does a negative PEG ratio indicate? Is it bad or very bad?

As far as I know, if you're buying a stock with a PEG ratio less than 1, then it's a good valuation of that stock. But I don't have any idea what a negative PEG indicates. Is it bad or very bad? Here ...
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2 answers
62 views

How to find competitors of a company with other proxies besides P/E ratio?

How to find competitors of a public United States company with other proxies besides P/E ratio? Someone told me look at companies with similar P/E ratios, but sometimes the P/E is N/A and it doesn't ...
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1 answer
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Now that I have all the stocks that respect Graham rules, how should I select the one I want to invest in?

As a preparation to investing, I queried a few APIs to create a list of stocks that respected Graham rules out of 100K tickers on the sales (earnings), assets to liabilities ratio and 10 years ...
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1 answer
47 views

Questions about Financial ratio

I am doing some tutorial questions about financial ratio and encounters some problems that I would like to share in this forum. Why we use Profit AFTER Interest & Tax as numerator in Return of ...
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2 votes
1 answer
66 views

Is it right way to calculate ROE by taking ratio of Net Profit and Total Equity?

Return on Equity is a ratio of Net Profit for some fiscal year let's say 2018 and Total equity at last date of the fiscal year. But Total Equity is calculated by adding some amount from Net profit(...
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What is the name of this ROI ratio?

I purchased a house with a detached garage. I remodeled the garage and now live in it. I rent out the house. My mortgage is $537 and I charge $650 to rent the house. Doing the math, I'm only keeping $...
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1 vote
0 answers
990 views

How is Debt to Equity ratio calculated in moneycontrol and screener.in?

I am trying to understand how Debt to Equity is calculated in websites such as moneycontrol.com and screener.in For e.g, if we look at Debt/Equity for STRTECH for Mar 2018, it's shown as 1 in both ...
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3 votes
1 answer
373 views

Profit margin and gross profit percentage: missing info in income statement?

I would like to calculate the profit margin and gross profit percentage for BHP in 2017. To do that, I need to figure out: 1) Gross profit Which one is it? The revenue is 38,285, and I am supposed ...
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1 answer
553 views

Financial statement analysis when interest received exceeds interest expense

I am conducting financial statement analysis on Apple and I noticed that the company has interest received that exceeds interest expense. In Apple's 2016 10-K form page 27 shows "Other Income/(Expense)...
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  • 111
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1 answer
2k views

Where can I find historic ratios by industry? [closed]

Where can I find 3-5 year historical data showing average or leading financial ratios by industry. For example, in industries like wireless, telecom,or biotech. The ratios I'm referring to are these ...
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2 answers
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What should I look for when looking for stocks that are 'on-sale'?

Considering the stock market is down these days I want to invest money in mainly Large-Cap Stocks and hold them for the long-term. I was originally looking at P/E ratios being lower than average, but ...
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4 votes
3 answers
425 views

Stock trading models that use fundamental analysis, e.g. PEG ratios?

I'm a finance undergrad writing a dissertation on fundamental analysis vs technical analysis applied to trading. I'm finding it easy to build technical indicators such as moving averages, while it ...
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-3 votes
2 answers
240 views

dividend cover ratio for stocks

Is there a source for a US stock's dividend cover ratio? Dividend cover in respect of ordinary share capital may be calculated as follows: Dividend Cover Ratio = Profit after tax - ...
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2 answers
14k views

Is it better to buy a company with a lower book value?

Is it better to buy a company which has a lower book value? Or does a lower book value mean that the market is pessimistic about future earnings of the company?
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1 vote
1 answer
245 views

Good Percentage Return on Equity? [closed]

Considering a public retail company existing for more than 47 years, would you suggest 23.12% to be a good percentage return on equity? I know that it is currently better than what banks can offer, ...
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13 votes
7 answers
35k views

What's a normal personal debt / equity ratio for a highly educated person?

I'm trying to figure out what a bad / normal / good personal debt / equity ratio is. Most sites deal with debt / income ratio, which is a cashflow metric, and I want to focus on assets / obligations. ...
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3 votes
2 answers
4k views

Calculating Profit Ratio (Gross Margin)

When looking at a company's income statement to calculate the Profit Ratio (Gross Margin) PM = Net Profit / Sales Do you include "other" revenue in the equation? Example: XYZ Ltd Income Statement ...
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5 votes
1 answer
808 views

How is it possible that a stock has a P/E of 0.01?

I was looking at this stock: Berkshire Hathaway Inc. (BRK-B) (The Class B shares). How come it has such a low P/E ratio?
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0 votes
1 answer
2k views

Calculate EPS yourself

According to finance.yahoo.com, PriceSmart Inc. (PSMT) has an EPS of 2.1 as of May 14, 2012 close. Where exactly do they get the earnings from? I thought I understood the EPS, but when I tried ...
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1 vote
1 answer
142 views

Calculating EPS

I have started teaching myself basic business stuff and have a question regarding calculating earnings per share. Q: [bunch of numbers for revenue, expenses...] At the beginning of year: 80,000 ...
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1 vote
1 answer
8k views

Finding Debt/Equity Ratio with Market Value of Equity

I'm trying to find out the debt/equity ratio (percentage) for various stocks. I'm keen to know the ratio based on the market value of equities, not the book value. I was told that Google Finance and ...
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1 vote
2 answers
148 views

Does a company's operating margin factor in interest the company pays?

Does the operating margin factor in interest? According to Wikipedia, operating margin is defined as operating income/revenue. The operating income is the EBIT, so it doesn't take into account the ...
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4 votes
1 answer
5k views

Where can I find historical ratios of international stock indexes? [closed]

What is the best source for historical ratios (such as p/e, p/s, price/book, dividend yield) of various international stock indexes (e.g. FTSE EPRA/NAREIT Developed Asia or MSCI Singapore)?
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9 votes
5 answers
2k views

Importance of dividend yield when evaluating a stock?

Why is the dividend yield (Dividend divided by market price) of a stock a valuable parameter to consider when evaluating a stock? By looking at it, what can one infer about the stock? edit: Thanks ...
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22 votes
5 answers
723 views

When is it better to rent and when is better buy in a certain property market?

I've been told the average rent for a house should be the house price, minus 3 zero's and that should be how much it should be a week, which I think works out to be about 5% of the house price per ...
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7 votes
2 answers
4k views

Joint ownership on home (50/50), when I apply for a loan, do they look at total mortgage payment as debt or half?

I am in joint ownership of a home (50/50). When I apply for a car loan and they are looking at my credit report, do they look at the total mortgage payment as my debt or only half? Does the credit ...
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10 votes
2 answers
373 views

What is the PEG ratio? How is the PEG ratio calculated? How is the PEG ratio useful for stock investing?

What is the PEG ratio? How is the PEG ratio calculated? How is the PEG ratio useful for stock investing? Are higher or lower PEG values better for a stock - and why?
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