Questions tagged [ratio]

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22
votes
5answers
665 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 ...
13
votes
5answers
29k 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. ...
10
votes
2answers
336 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?
9
votes
5answers
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 ...
7
votes
2answers
3k 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 ...
5
votes
1answer
575 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?
4
votes
3answers
343 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 ...
4
votes
1answer
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)?
3
votes
2answers
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 ...
3
votes
1answer
258 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 ...
1
vote
1answer
137 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 ...
1
vote
1answer
221 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, ...
1
vote
2answers
143 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 ...
1
vote
1answer
49 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(...
1
vote
1answer
7k 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 ...
1
vote
0answers
878 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 ...
0
votes
2answers
6k 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?
0
votes
1answer
346 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)...
0
votes
1answer
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 ...
0
votes
2answers
109 views

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 ...
0
votes
1answer
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 ...
0
votes
0answers
22 views

Which Ratios are affected by Capex

A company is doing Capacity expansion. But we look for return ratios and others to understand quality of a company. What ratios are affected by it. Debt can be higher because of investment or equity ...
0
votes
1answer
68 views

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 $...
-3
votes
2answers
232 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 - ...