8
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How to Interpret the Widely Fluctuating Gold-Silver Ratio
Gold-silver ratio is meaningless.
Gold and silver are used in industry as components of a lot of electronics and industrial equipment. They're used differently, in different ways, and in different ...
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5
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How to calculate "bang for buck" when less is better, not more
This is actually a pretty common problem in economics, when looking at marginal utility versus marginal cost.
You start with a baseline product - in our case, the heaviest (and cheapest) bag:
Baseline:...
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5
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Why would rising interest rates favor the company with more long-term debt?
The cost of your existing debt is fixed; it stays the same no matter how interest rates change. It's only new debt that is affected by the current interest rate.
Rising interest rates means your ...
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3
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How to Interpret the Widely Fluctuating Gold-Silver Ratio
This is more of an economics question than a personal finance question, but nevertheless for people who are storing their personal wealth in gold or silver, it is a natural question.
The main answer ...
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3
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What does a negative PEG ratio indicate? Is it bad or very bad?
a negative PEG (Price to Earnings Growth) ratio can mean one of two things: either the company's current earnings are negative, or its expected earnings growth rate is negative. Neither are desirable ...
3
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Stock trading models that use fundamental analysis, e.g. PEG ratios?
One idea: If you came up with a model to calculate a "fair price range" for a stock, then any time the market price were to go below the range it could be a buy signal, and above the range it could be ...
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2
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What's a normal personal debt / equity ratio for a highly educated person?
From my perspective, healthy debt is a debt you are in control of, that you know the cash flow requirements of and understand the long-term payoff and inherent risk. More important than ratios, is ...
2
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What should I look for when looking for stocks that are 'on-sale'?
It might seem like the PE ratio is very useful, but it's actually pretty useless as a measure used to make buy or sell decisions, and taken largely on its own, pretty useless becomes utterly and ...
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Profit margin and gross profit percentage: missing info in income statement?
Both companies referenced above report under IFRS (or at least the Australian equivilent), however, they seperate costs differently -- BHP under nature of expense method and FMG under function of ...
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2
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What's a normal personal debt / equity ratio for a highly educated person?
0.8 and 0.5 are fairly common numbers for Debt to Asset Ratios. I agree it is confusing since most places on the internet talk about Debt to Asset Ratio, and even here most commenters used Debt to ...
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2
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Question about ROIC
Actually it is taken into account. The capital charge for Year 1 is the 5$ shown under Year 2 (60 * 8.5%), for Year 2 is the 11$ (126 * 8.5%) and so on. Hope this makes sense.
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How to calculate the average shareholder's equity?
The average equity is the four continious quarter shareholders' equity,the concept of ttm.
For aapl's 2022 year 3 quarter:
average equity = (50.67+58.11+67.4+71.93)/4 = 62.0275
roe = net income /...
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1
vote
Accepted
Unsure of which financial ratios to suggest inventory level
Total assets turnover is a superset of inventory turnover. Therefore, in my opinion it is related to inventory the same way inventory turnover is, except that it captures additional "noise" ...
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1
vote
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Understanding Days Sales Outstanding (DSO) Ratio
AR is the amount of sales on credit that have not been collected yet. As new credit sales are made, AR goes up, and as people pay their bills, AR goes down.
As you look at a larger time period, the ...
- 131k
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Calculating put-call ratio when volume is @0
Realistically, financial ratios are only useful to the extent that data is relatively 'normal'. If a financial ratio needs you to divide by zero given the data set, then that is a sign that the ratio ...
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1
vote
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How to find competitors of a company with other proxies besides P/E ratio?
Let me get this straight.
You are attempting to find a competitor of a public company by looking companies with similar P/E ratios?
This can only fail.
P/E ratio tells nothing about the sector a ...
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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?
I think any answer to this one is going to be in the realms of personal preference.
I can think of a couple of approaches. Graham was all about having a margin of safety, preferably more than one, i....
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Questions about Financial ratio
Let's answer the questions one at a time.
Always try to match the cash flow with the source of capital. You use net income for ROE because this is the cash flow to the equity investors. Interest ...
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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.
No - you use average equity (including retained earnings), so you'd ...
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Financial statement analysis when interest received exceeds interest expense
My question is, should I separate the interest expense from interest received, and use the interest expense figure to calculate the Interest Coverage Ratio?
Yes - the Interest Coverage Ratio is how ...
- 131k
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Where can I find historic ratios by industry?
If you would like to find data on a specific industry/market sector, a good option is IBISworld reports. You can find their site here.
You can find reports on almost any major US sector. The reports ...
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Stock trading models that use fundamental analysis, e.g. PEG ratios?
Maria, there are a few questions I think you must consider when considering this problem. Do fundamental or technical strategies provide meaningful information? Are the signals they produce actionable?...
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dividend cover ratio for stocks
"Profit after tax" can have multiple interpretations, but a common one is the EPS (Earnings Per Share). This is frequently reported as a TTM number (Trailing Twelve Months), or in the UK as a fiscal ...
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What's a normal personal debt / equity ratio for a highly educated person?
Shortly after college (Engineering BS/MS) my wife & I started buying rental property for 15% down. Within a year of purchase they were cash flow positive. Luckily in our area housing has ...
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