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Return On Equity explained
 
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What is Return On Equity? Return On Equity or ROE is a financial ratio that can help you analyze the performance of a company or business unit from the perspective of the shareholder, and compare the financial performance to others. This video takes you through the Return On Equity formula, shows you how to calculate ROE, how to interpret ROE, and gives suggestions on how to improve Return On Equity. Return On Equity links together information from two of the three main financial statements, by taking the bottom line of net profit from the income statement and the equity or shareholder capital amount out of the right hand side of the balance sheet. ROE or Return On Equity is defined as Net Income divided by Equity. In other words, the net profit that a company has generated during a year, divided by the book value of the shareholder capital that a company owes on the balance sheet date. ROE is an important indicator of attractiveness of a business to shareholders. Can the company generate a good return on the equity that investors have invested in it? Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
ROE (Return On Equity) Explained
 
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What ROE means when evaluating a business and how to calculate ROE?
Views: 49134 KCLau Money
Return on Equity (ROE) - Explained in Hindi
 
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Return on Equity is explained in hindi. ROE is a profitability financial ratio that gives the return on investment for shareholders. In next video we will learn about ROCE i.e. Return on Capital Employed that gives overall returns on the capital in the business. Related Videos: Financial Ratios & Analysis: https://youtu.be/CZscpOND3Vs Profitability Ratios: https://youtu.be/pHgiuO2ZYoU Return on Investment (ROI): https://youtu.be/ij7y5e2MVG4 ROCE (Return on Capital Employed): https://youtu.be/FjWuma0U2x0 Return on Assets: https://youtu.be/7z9jDKNub6U रिटर्न ऑन इक्विटी को इस वीडियो में हिंदी में एक्सप्लेन किया गया है। ROE एक प्रोफिटेबिलिटी फाइनेंसियल रेश्यो है जो शेयर होल्डर्स के लिए निवेश पर रिटर्न देता है। अगले वीडियो में हम ROCE यानिकि रिटर्न ऑन कैपिटल एम्प्लॉयड के बारे में जानेंगे जो की बिज़नेस के कैपिटल पर ओवरऑल रिटर्न देता है। Share this Video: https://youtu.be/K-OhdUGqdzc Subscribe To Our Channel and Get More Property, Real Estate and Finance Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g If you want to become an Expert Real Estate investor, please visit our website https://assetyogi.com now and Subscribe to our newsletter. In this video, we have explained: What is a return on equity or ROE? How many types of ROE is there? How to calculate returns using return on equity formula? What are the limitations of return on equity calculation? What is the common equity? What is the meaning of preferred equity? Which profitability ratio is used to calculate the return on investment for shareholders? How to calculate the return on common equity? What happens when the company increases debt & decreases the equity portion? In the video, you will also see how you can check the financials of different companies online & calculate the return on equity. Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Instagram - http://instagram.com/assetyogi Google Plus – https://plus.google.com/+assetyogi-ay Facebook – https://www.facebook.com/assetyogi Linkedin - http://www.linkedin.com/company/asset-yogi Twitter - http://twitter.com/assetyogi Pinterest - http://pinterest.com/assetyogi/ Hope you liked this video in Hindi on “Return on Equity (ROE)”.
Views: 22796 Asset Yogi
Return on Common Equity CFA exam ROCE ch 5 p 6
 
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financial statement analysis, common-size financial statements, acid test ratio, account receivable turnover, inventory turnover, asset turnover, gross profit, debt ratio, equity ratio, times interest earned, dividend yield, pe ratio, CFA exam, CPA exam
Rate of Return on Common Stockholder's Equity ROE
 
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Please like our Facebook page at https://www.facebook.com/rutgersweb To watch the entire video of this lecture, go to https://www.youtube.com/watch?v=j6qmTHU0IXI To receive additional updates regarding our library please subscribe to our mailing list using the following link: http://rbx.business.rutgers.edu/subscribe.html
Stockholders Equity (Rate Of Return On Common Stock Equity, C/S Shareholder Profitability)
 
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Accounting for rate of return on common stock equity, measures profitability from the common stock shareholders viewpoint, this ratio shows how many dollars of net income the company earned for each dollar invested by the owner, return on equity (ROE) helps investors determine the worthiness of the stock even when the overall market is not doing well, rate of return on C/S equity is based on income that is available to common stock share holders after preferred stock dividend is subtracted from the net income for the period, the basic equation (net income minus P/S dividends/common stock equity minus P/S par value), common stock equity = (C/Spar + C/S APIC + R/E), detailed accounting by Allen Mursau
Views: 10258 Allen Mursau
Abnormal earnings valuation and Return on common equity CFA exam ch 6 p 3
 
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Corporate valuation, CFA exam, MBA course, finance course, use fundamental valuation approach, Forecasting, Cash flow assessment , discounted cash flow, Technical analysis, cash flow valuation model, free cash flow, zero-growth perpetuities, constant-growth perpetuities, price-earnings , earnings multiples, abnormal earnings, ROA, return on assets, ROCE, return on common equity, fair value accounting, net present value of growth opportunities, NPVGO, permanent earnings, transitory earnings, Quality of earnings , earnings management, Sensitivity analysis
The Return on Equity Ratio
 
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Help us learn more about your experience by completing this short survey: https://www.surveymonkey.com/r/RRKS8LZ Subscribe to Alanis Business Academy on YouTube for updates on the latest videos: https://www.youtube.com/alanisbusinessacademy?sub_confirmation=1 Go Premium for only $9.99 a year and access exclusive ad-free videos from Alanis Business Academy: http://bit.ly/1Iervwb View additional videos from Alanis Business Academy and interact with us on our social media pages: YouTube Channel: http://bit.ly/1kkvZoO Website: http://bit.ly/1ccT2QA Facebook: http://on.fb.me/1cpuBhW Twitter: http://bit.ly/1bY2WFA Google+: http://bit.ly/1kX7s6P Return on equity is a type of profitability ratio that measures how successful a firm is at using its investments to generate profit. Using the return on equity formula, investors can determine how much profit they're receiving for each dollar in equity investment. Not only does this financial ratio allow investors to determine if their making a good investment, but it also allows them to compare the company's performance to that of other firms. Learn more about return on equity or ROE in the latest lecture from Alanis Business Academy. __________ Photo by Rick Tap: https://unsplash.com/@ricktap
What Is Common Equity Made Up Of?
 
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What Is Common Equity Made Up Of?. Part of the series: Finance Questions. Common equity is made up of a few specific things. Learn what common equity is made up of with help from a business consultant and marketing expert in this free video clip. Read more: http://www.ehow.com/video_12214863_common-equity-made-up-of.html
Views: 1303 ehowfinance
Return on Common Stockholder's Equity
 
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Prepared by Paige Paulsen
Views: 3060 Paige Paulsen
Return on common stockholders' equity
 
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Return on common stockholders' equity
Views: 24 Ed Kaplan
Tangible Common Equity, or TCE
 
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Tangible Common Equity used to be an obscure and rarely-used accounting term. Today it's one of the main motivators behind the government's decision to turn the American taxpayer into one of Citigroup's biggest stockholders.
Views: 707 Ethan Lindsey
Shareholders Equity Statement | Definition | Components
 
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In this video, on Shareholders Equity Statement we will study the definition of Shareholders Equity and its components. 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫𝐬 𝐄𝐪𝐮𝐢𝐭𝐲? -------------------------------------------------------- Shareholder's equity is shareholders interest in the firm's net assets. It is one of the balance sheet's most important part. 𝐂𝐨𝐦𝐩𝐨𝐧𝐞𝐧𝐭𝐬 𝐨𝐟 𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫𝐬 𝐄𝐪𝐮𝐢𝐭𝐲 -------------------------------------------------------------------- #1- Common Stock #2 - Additional Paid-Up Capital #3 - Preferred Stock #4 - Retained Earnings #5 - Treasury Shares #6 - Accumulated Other Comprehensive Income # 7 - Minority Interest If you want to know more about 𝐒𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫𝐬 𝐄𝐪𝐮𝐢𝐭𝐲 𝐒𝐭𝐚𝐭𝐞𝐦𝐞𝐧𝐭 you can visit the 𝐥𝐢𝐧𝐤 𝐩𝐫𝐨𝐯𝐢𝐝𝐞𝐝 𝐡𝐞𝐫𝐞:- https://www.wallstreetmojo.com/shareholders-equity/ Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on link below to subscribe - https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1
Views: 259 WallStreetMojo
Shareholders Equity, Dividend  Payout & Return on Common Equity for PepsiCo 2017
 
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This video discusses disclosures from PepsiCo's 2017 Annual Report/10-K for shareholders equity and the calculation and interpretation of the dividend payout and return on common equity (ROCE) ratios.
Views: 18 Mary Michel Ph.D.
Ratio Analysis: Return on Capital Employed (ROCE)
 
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This short revision video introduces the concept of Return on Capital Employed.
Views: 91655 tutor2u
Tangible Common Equity. What the...?
 
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When calculating how much money banks should keen on their balance sheet to keep them safe, regulators often look to something called Tangible Common Equity. Here's how it works.
Views: 583 paddy hirsch
How to calculate Return on Equity
 
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Here’s an important question to ask about any investment you’re making: “Is this the best use of my money?” Hi everybody, Ron Phillips here with RPC Invest. https://www.rpcinvest.com/ Like us on Facebook: https://www.facebook.com/WealthAcceleratorSystem/ Blog Post: https://www.rpcinvest.com/blog Don’t forget to Comment and Subscribe if you liked this video! Thanks for checking out this video! A Question i get asked all the time is…. Why should i invest into Real Estate. http://www.ron-phillips.com/3xmarket/ The answer that your will video out if you check out in this video http://vimeo.com/99046951 is that rental properties are not only a great investment if you do it right! They can become a passive income that your can replace your current income with or stay at your day job and build your wealth on the side for an early retirement! With my FREE Wealth Accelerator System you will learn how to Double your Retirement in 45 days or Less! Watch Ron's new webinar here: https://goo.gl/KAd85k Not only will i teach you the RIGHT kind of property to look for, but i’ll also teach you how to create a positive cash flow. With our wealth plan we look at your net worth and set a goal to INCREASE net worth before retirement! You can click this link https://www.rpcinvest.com/weathplan and your current financial situation and set your financial goals and see how your net worth can grow using REAL investment properties! My main goal when i started this was to create a system that would give you FINANCIAL FREEDOM through an investment that gives you double digit returns. https://goo.gl/1MrD7G I don’t charge you a dime to learn this my system! We will help you find the right homes to start growing your WEALTH!
Views: 25002 InvestmentPropCoach
Return on Average Equity ROAE Formula | Calculation and Example
 
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In this video we discuss ROAE Return on Average Equity Formula along with some practical examples to understand this topic in a better manner. 𝐑𝐞𝐭𝐮𝐫𝐧 𝐨𝐧 𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐄𝐪𝐮𝐢𝐭𝐲 𝐅𝐨𝐫𝐦𝐮𝐥𝐚 -------------------------------------------------------------- Return on Average Equity Formula helps investors to know how much net income is being generated by using the shareholders’ equity. 𝐅𝐨𝐫𝐦𝐮𝐥𝐚 𝐭𝐨 𝐂𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐞 𝐑𝐞𝐭𝐮𝐫𝐧 𝐨𝐧 𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐄𝐪𝐮𝐢𝐭𝐲 (𝐑𝐎𝐀𝐄) ----------------------------------------------------------------------------------------------- Return on Average Equity = Net income / Average Shareholders Equity 𝐄𝐱𝐚𝐦𝐩𝐥𝐞 𝐨𝐟 𝐑𝐞𝐭𝐮𝐫𝐧 𝐨𝐧 𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐄𝐪𝐮𝐢𝐭𝐲 𝐅𝐨𝐫𝐦𝐮𝐥𝐚 ---------------------------------------------------------------------------------- Beir and Sons Company has the following information for you – Net Income for the year – $55,000 The beginning figure of shareholders’ equity – $145,000 The ending figure of shareholders’ equity – $175,000 Here we need to find out the return on average equity (ROAE) of Beir and Sons Company. First we need to calculate the average of shareholders’ equity by simply adding the beginning and the ending figures and then dividing the sum by 2. Average shareholders’ equity = ($145,000 + $175,000) / 2 = $160,000. Net income for the year is $55,000. (ROAE) Return on Average Equity Formula = Net Income / Average Shareholders’ Equity = $55,000 / $160,000 = 28%. So the Return on Average Equity of Beir and Sons Company is 28% To know more about 𝐑𝐞𝐭𝐮𝐫𝐧 𝐨𝐧 𝐀𝐯𝐞𝐫𝐚𝐠𝐞 𝐄𝐪𝐮𝐢𝐭𝐲 (𝐑𝐎𝐀𝐄) 𝐅𝐨𝐫𝐦𝐮𝐥𝐚, you can go to this 𝗹𝗶𝗻𝗸 𝗵𝗲𝗿𝗲:- https://www.wallstreetmojo.com/return-on-average-equity-roae/ Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe - https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1
Views: 144 WallStreetMojo
Why Do You Use Net Income to Calculate Return on Assets (ROA)?
 
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You’ll learn why you pair Net Income with Return on Assets (ROA) in this lesson, as well as a rule of thumb you can use to determine how you can pair up other Income Statement metrics like Operating Income and NOPAT with the appropriate Balance Sheet metric when calculating returns-based ratios. http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" QUESTION: In the Return on Assets (ROA) calculation, why we do use Net Income? Shouldn’t we use Net Operating Profit After Taxes (NOPAT) instead since Assets represent both equity and debt investors? Return on Assets = Net Income / Average Assets It tells you how efficiently a company is using all its assets to generate profits, or how *dependent* a company is on its assets. It’s useful for comparing similar companies in an industry and seeing which ones are operating most efficiently. Other, similar metrics include Return on Equity (ROE), defined as Net Income / Average Equity, and Return on Invested Capital (ROIC), defined as NOPAT / Average Invested Capital. NOPAT = Operating Income * (1 – Tax Rate), and Invested Capital = Common Equity on the Balance Sheet + Debt + Preferred Stock + Other Possible Long-Term Funding Sources. You use Net Income with Total Assets and Equity because of the definitions of Equity Value and Enterprise Value: Equity Value: The value of ALL the company’s Assets, but ONLY to equity investors (common shareholders). Enterprise Value: The value of ONLY the company’s Core Business Assets, but to ALL investors (equity, debt, preferred, and possibly others). These pairings apply not just to valuation multiples, but also to financial metrics and ratios such as ROA, ROE, and ROIC. Net Income is only available to common equity investors because debt investors have already “been paid” with the interest they received. You subtract this interest on the Income Statement before arriving at Net Income. As a result, Net Income pairs with Equity on the Balance Sheet, Equity Value in valuation, and ALL the assets on a company’s Balance Sheet. It’s the same idea for ROE: you use Net Income because Net Income pairs with Equity on the Balance Sheet. For ROIC, NOPAT is available to ALL the investors in the company because debt investors have not yet received interest, and Preferred investors haven’t received anything, either. So you pair it with Invested Capital on the Balance Sheet, Enterprise Value in valuation, and ONLY the core business assets on a company’s Balance Sheet. So if you wanted to use NOPAT with a company’s Assets, you’d have to subtract out the non-core-business ones and create a new metric, something like “Core Business Assets.” For example, you might take a company’s Total Assets and subtract out cash, investments, equity investments, and anything else related to side activities (i.e., NOT creating and selling products to customers). And then you could pair NOPAT with this new metric: NOPAT / Core Business Assets. Maybe you could call it “Return on Core Business Assets,” or ROCBA. RESOURCES: https://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-19-Return-on-Assets-Net-Income-Slides.pdf
EPS, PE & Return on Common Stockholder's Equity
 
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Prepared by Lynnette Yerbury
Views: 274 Paige Paulsen
Return On Investment (ROI) or Yield... Finance Analysis on Your Next Property Investment
 
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Should you use Return on Investment (ROI) when carrying out analysis on your next investment property? I think that's a great big "YES" :-) If you walk into any Estate Agent (Real Estate agent) across the land and ask to see their finest investment properties... I can pretty much guarantee they'll put some deals in front of you and start quoting "Yield". Now I'm not saying there's anything wrong with this and it's certainly a good place to start - however I personally ALWAYS use Return on Investment (ROI). Return on Investment gives you the ability to compare one deal against another - regardless of the finance you've used to buy the place so you can get the biggest "bang or your buck". Obviously, ROI shouldn't be the ONLY factor - but I believe it should be your go to calculation when choosing an investment. If you found this video helpful, please take a moment to subscribe to my YouTube and Facebook channels, as this way I can keep you up to date with when the next video is available for you. I've also added below a link to every property tool I use - which I thought you might find helpful :-) PLEASE SUBSCRIBE ON YOUTUBE... https://www.youtube.com/c/yourfirstfourhouses PLEASE LIKE MY FACEBOOK PAGE... https://www.facebook.com/YourFirstFourhouses FREE DOWNLOAD OF ALL MY PROPERTY TOOLS... https://yourfirstfourhouses.com/
Views: 25967 Your First Four Houses
Book Value per Share | Equity Ratio Analysis | Intermediate Accounting | CPA Exam FAR | Chp 15 p 8
 
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Ratio analysis, book value per shares, return on stockholders equity, return on equity, payout ratio, retention ratio, financial statement analysis, profitability ratio, long term solvency ratio, ash dividend, property dividend, liquidating dividend, stock dividend, small stock dividend, large stock dividend, cpa exam
Return on Equity Ratio (ROE Formula, Examples) | Calculate Return on Equity
 
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In this video, I discuss what is ROE i.e. Return on Equity in detail. Here we look at ROE formula, calculations along with top return on equity examples. Return on Equity is a profitability ratio for shareholders. It provides how much returns the company has generated per unit of their shareholder's equity. You can calculate Return on equity using the two set of ROE formulas 1) Return on Equity Formula = Net Income / Total Equity 2) DuPont ROE Formula = (Net Income / Net Sales) x ( Net Sales / Total Assets) x Total Assets / Total Equity or DuPont Return on Equity Formula = Profit Margin * Total Asset Turnover * Equity Multiplier Also, In this video, we calculate return on equity by taking Nestle's example. For more, You can visit detailed note on Return on Equity or ROE in the link below - https://www.wallstreetmojo.com/return-on-equity-roe-dupont-roe/ Subscribe to our channel to get new updated videos. Click the button above to subscribe or click on the link below to subscribe - https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1
Views: 736 WallStreetMojo
What is Return on Equity (ROE)
 
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Return on equity (ROE) is the amount of net income returned as a percentage of shareholders’ equity. Return on equity, (also known as "return on net worth" or RONW) measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. The calculation for Return on Equity is relatively simple, ROE = Net Income/Shareholders’ Equity. ROE is typically expressed as a percentage. ROE is typically measures an entire fiscal year and is calculated before dividends are paid to common stockholders but after dividends to preferred stock holders. Shareholders' equity may not include preferred shares, and is sometimes called return on common equity (ROCE) = net income - preferred dividends / common equity. _________________________________________________________________________________________________ Join our free online community of active traders https://tackletrading.com/ and surround yourself with professional coaches and experienced, successful traders as well as new burgeoning traders looking for the right systems to trade and success-minded people to surround themselves with. Make sure to sign up for your free 15-day trial and take advantage of our powerful trading tool box, the Tackle Trading Trade Center, get our weekly Market Scoreboard and Scouting Reports as well as our daily stock market reports. SIGN UP NOW: http://bit.ly/tackle-15-day-free-trial _________________________________________________________________________________________________ DISCLAIMER: Tackle Trading LLC is providing this live broadcast and any related materials (including newsletters, blog post, videos, social media and other communications) for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Read full disclaimer here: https://tackletrading.com/legal-disclaimer/
Views: 131 Tackle Trading
How To Compute Return On Equity
 
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Have you ever wanted to get good at math, business accounting. Well look no further than this guide on How To Compute Return On Equity . Follow Videojug's industry leaders as they steer you through this advice video. Subscribe! http://www.youtube.com/subscription_center?add_user=videojugeducation Check Out Our Channel Page: http://www.youtube.com/user/videojugeducation Like Us On Facebook! https://www.facebook.com/videojug Follow Us On Twitter! http://www.twitter.com/videojug Watch This and Other Related films here: http://www.videojug.com/film/how-to-calculate-roe
Views: 5594 Two-Point-Four
Decoding of Corporate FInancial Communications: Profitability & Risk Analysis
 
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Profitability Analysis (Ch. 4) Risk Analysis (Ch. 5) Professor Cooperberg May 31st, 2013 Return on common equity is net income less preferred stock dividends divided by the average common stockholder's equity. It measures the return to common shareholders. It adjusts net income for nonrecurring charges, as in ROA. It subtracts costs of debt financing and preferred stock dividends. ROCE should exceed the cost of equity capital - the rate of return that a common shareholder demands. Financial leverage is using the lower cost of debt capital to increase the return to common shareholders. Earnings per share is one of the most frequently used measures of profitability. GAAP requires firms to disclose on the income statement. It is covered explicitly by the opinion of the independent auditor. There are two types of EPS - basic EPS (simple capital structure) and diluted EPS (complex capital structure). Simple capital structure is for firms that do not have convertible bonds, convertible preferred stock, stock options, or warrants. It is net income less preferred dividends divided by the weighted average number of common shares outstanding. Complex capital structure is for firms that have convertible bonds, preferred stock, stock options, or warrants. It assumes the conversion and exercising of all dilutive shares. Criticisms of EPS is that it does not consider the amount of assets or capital required to generate earnings. It cannot make comparisons accross firms because the value of each share can differ. The number of shares of common stock outstanding is a poor measure of the amount of capital in use. It remains one of the focal points of announcements and is frequently used to value firms. Time series are ratios compared over a number of periods. It must consider changes in product / geographical mix, acquisitions and divestitures, changes in accounting methods, and unusual or non-recurring amounts. Cross sectional ratios are those that can be compared across different firms. They must take into account industry definition, how industry averages are computed, and how ratios are defined / computed. Risk can be international due to exchange rate changes, host government regulations / attitudes, political unrest, expropriation of assets, and recessions. Domestic risk can be due to recessions, inflation or deflation, interest rate changes, demographic changes, and political changes. Industry risk can be due to technology, competition, regulation, availability and price of raw materials, labor and other input price changes, and unionization. Firm specific risk can come from management competence (i.e. lack thereof), strategic direction, and lawsuits. Financial risk can arise from leverage (which is a technique to multiply gains and losses). Financial leverage multiplies gains through the use of debt. Disaggregating ROCE provides insight into the degree of benefit from leverage. The higher the leverage put in place the greater the financial risk that exists. Note that debt is a good thing until you reach the "tipping point" which puts you in danger to become bankrupt. Short-term liquidity risk is the near term ability to generate cash to service working capital needs. It delays cash outflows for as long as appropriate and receives inflows as early as possible. Problems may occur, such as operating costs being greater than revenue, and a high degree of debt being incurred due to high carrying costs. Short-term borrowing can be line of credit or commercial paper. Ratio analysis is often used to assess short-term liquidity risk, such as the current ratio, quick ratio, operating cash flow to current liability ratio, revenue to cash ratio, working capital turnover ratios (accounts receivable turnover, inventory turnover, & accounts payable turnover). The current ratio is the level of cash and other current assets above short-term liabilities (calculated by dividing current assets by current liabilities). It should be greater than 1.0 but not too high. The quick ratio (acid test) is cash plus marketable securities plus accounts receivable divided by current liabilities. It only includes cash-like assets (cash equivalents). Appropriate results may differ by industry due to some subjectivity. Return on Common Equity (ROCE): 0:37 Disaggregating ROCE: 4:16 Relating ROA to ROCE: 5:56 Earnings Per Share (EPS): 6:43 Yahoo Finance (EPS and learning how to read and understand stock information): 10:59 Criticisms of EPS: 17:26 Ratio Comparisons -- Time Series: 18:05 -- Cross-sectional: 19:12 Silence (skip this): 21:31 CHAPTER 5 BEGINS: 35:22 Analyze Profitability & Risk: 36:26 Causes of Risk: 37:40 Financial Risk: 39:33 Short-Term Liquidity Risk: 42:16 Short-Term Liquidity Ratios: 45:41 Working Capital Activity Ratios - Pepsi: 54:23 Long-Term Solvency Risk: 57:23 Debt Ratios: 59:34
Excel Finance Class 19:Profitablility Rations: Return On Equity & Return On Assets & DuPont Analysis
 
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Download Excel workbook http://people.highline.edu/mgirvin/ExcelIsFun.htm Learn how to calculate Return On Equity, Return On Assets, Profitablility & DuPont Analysis. Return On Investment Highline Community College Busn 233 Slaying Excel Dragons Financial Management with Excel taught by Michael Girvin.
Views: 28162 ExcelIsFun
Intrinsic Value of a Stock Problem
 
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Principles of Finance Class- Intrinsic value of a stock. If you have the dividend payout, growth rate and needed return. Textbook problem
Views: 83578 Tim Liptrap
FRM: Bank Balance Sheet & Leverage Ratio
 
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Stylized balance sheet of depository institution to illustrate (1) high leverage, (2) dependency on spread (ROA - COF) and (3) key ratios: leverage, and Basel's Tier 1 leverage ratio. For more financial risk videos, visit our website! http://www.bionicturtle.com
Views: 76740 Bionic Turtle
Compute and Understand the Return on Equity Ratio - Slides 1-11
 
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This is the full video on the topic "Compute and Understand the Return on Equity Ratio". If you would rather watch this video in small bites, you can go to my playlist titled "Compute and Understand the Return on Equity Ratio" where you will see all the slide-specific videos that make up this full video. These videos are part of a free online course in accounting created by Kevin Kimball of Brigham Young University -- Hawaii using the Canvas Network's Learning Management System (LMS). The actual course will first become available for enrollment a couple months prior to the start of Winter Semester 2014 (which starts in January) at learn.canvas.net. Aside from that, all of the videos in this course will be freely available in YouTube with no registration requirement, you just won't have access to the outcome assessment features (i.e. quizzes) and the interaction with the professor and fellow students that will be available in the full course at learn.canvas.net. The reason I broke the full presentation into multiple individual video slides was twofold 1) it was easier to edit and 2) so that the students taking my online course could jump to each individual slide's video so that they could watch just the video segments they needed most. I put it in one full video to save you time in that you will only need to press play once. Brought to you by the Debits and Credits Trainer Android App.
Views: 690 Kevin Kimball
EPS Earnings Per Share Explained in 11 minutes - Financial Ratio Analysis Tutorial
 
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Clicked here http://www.MBAbullshit.com/ and OMG wow! I'm SHOCKED how easy.. No wonder others goin crazy sharing this??? Share it with your other friends too! Let's say that ABC Company's Net income last year is one thousand dollars and there are one hundred shares outstanding. What is its earnings per share? Well its super simple, earnings per share is simply the total net income last year of the whole company divided by the number of shares outstanding. Now, if you do this equation you'd find that the earnings per share is exactly ten dollars, a nice simple easy round number. Now this is the most easy part of financial ratio which is to compute the actual number. What's more important is what does this mean? This means that every share earns ten dollars a year in profit, or last year every share earned ten dollars a year in profit. Meaning, you get the whole profit of the company and you divide that by the total number of shares. Then every shareholder, assuming every shareholder owns exactly one share, then every shareholder gets ten dollars a year in profit. Now I'd like to stress that this is ten dollars a year in profit not in dividend. EPS Earnings Per Share in 11 minutes - Financial Ratio Analysis Tutorial http://www.youtube.com/watch?v=2bbsAsnX1nM
Views: 104307 MBAbullshitDotCom
Financial ratio analysis
 
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Financial ratios explained! How does financial ratio analysis work? Let’s discuss ten of the most popular financial ratios that can help you find the story behind the numbers. What do you need to get started on a financial ratio analysis? You need an income statement, the overview of how much profit a company made during a year. You also need a balance sheet, an overview of what a company owns and what a company owes at a specific point in time. We will start off with financial ratios that only focus on the income statement, then look at financial ratios that only focus on the balance sheet, and end with powerful financial ratios that combine information from the income statement and the balance sheet. Performing a financial ratio analysis has a scientific element to it (finding data and putting it into formulas), as well as an artistic element (assigning meaning to the outcome of the calculations, and seeing the big picture). In this video on financial ratio analysis, we cover ten financial ratios: On the income statement: gross profit %, operating margin %, return on sales % On the balance sheet: current ratio, debt-to-equity, equity as % of total When linking the P&L and the balance sheet: return on equity, asset turnover, receivables turnover, inventory turnover Philip de Vroe (The Finance Storyteller) aims to make strategy, #finance and leadership enjoyable and easier to understand. Learn the business and accounting vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better investing decisions. Philip delivers #financetraining in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Book Value vs Market Value of Shares
 
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What is the difference between book value and market value of shares on the stock market? This video explains the book value and market value concepts, and illustrates book value versus market value using the example of Apple Inc. The distinction between book value and market value of a stock is basically one of looking back versus looking forward. Book value, or accounting value, is based on a company’s historical financial results, looking back. You use a company’s latest balance sheet to come up with the book value of the equity, you look up the number of shares outstanding (which is usually mentioned in the earnings per share calculation in the income statement), and when you divide the two numbers you get the book value per share. Market value, or economic value, depends on the expectations of investors for the future of the company, looking forward. Do investors see sunshine and blue skies coming up, or clouds and thunderstorms? In order to form an opinion about a company’s future, it is wise to dive into its strategy, technology, and leadership. Do these give you confidence that the company is on the right track? Next step is to try to translate that assessment to numbers: based on the strategy, technology, and leadership, what do you see as the possible revenue, income, and cash flow for the company for the next 10 to 20 years? Last step is to review probability and variability: do you think the projected revenue, income and cash flow are pretty much a “done deal”, so the risk and volatility are low, or is there a wide range of both positive and negative scenarios, so the risk and volatility are high? Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Calculating Return on Equity (ROE) in Excel
 
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Download 33 Financial Ratios Template: http://www.officetodo.com/public/product/33-financial-ratios/ Return on equity shows how much profit a company earned in comparison to the total amount of shareholder equity. To calculate return on equity open your income statement and balance sheet. Divide net profit after tax from income statement with shareholder equity from balance sheet
Views: 19991 OfficeToDo
Return on assets ROA CFA exam ch 5 p 5
 
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financial statement, analysis, common-size financial statements, acid test ratio, account receivable turnover, inventory turnover, asset turnover, gross profit, debt ratio, equity ratio, times interest earned, dividend yield, pe ratio, CFA exam, CPA exam
Asset Turnover Ratio, Profit Margin On Sales Ratio, Rate Of Return On Assets (ROI)
 
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Accounting for evaluating assets relative to activity (turnover) and profitability, 1-Asset Turnover Ratio, 2-Profit Margin on Sales and 3-Rate of Return on Assets, (1) Asset Turnover Ratio: How efficiently a company uses its assets to generate sales, (net sales/average total assets) = equals asset turnover ratio, (2) Profit Margin on Sales Ratio: (Rate of Return on Sales), how profitably the company uses its assets, (net income/net sales) = profit margin on sales, and (profit margin on sales x asset turnover ratio) =rate of return on assets, (3) Rate of Return on Assets (ROI): The rate of return a company acheives through use of its assets, (net income/average total assets) = rate of return on assets, detailed calculations by Allen Mursau
Views: 19125 Allen Mursau
WST: 1.6 Accounting - Ratios - ROE
 
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Wall St. Training Self-Study Instructor, Hamilton Lin, CFA goes through the detail of one of the most common used ratios, ROE, Return on Equity and the detailed breakdown of its components. There's always more than meets the eye as we decompose ROE to better understand source of profitability. For more information of the video courses previewed here, go to: http://www.wstselfstudy.com/modules.html Over 80 hours of online, interactive Self-Study Videos! ***YOUTUBE VISITORS ONLY*** 10% off any online course, use Discount code: youtube http://www.wstselfstudy.com Wall St. Training Self-Study provides online, video-based, self-study financial modeling training solutions to Wall Street. Our interactive course modules are Excel-based and specialize in advanced and complex financial modeling, valuation modeling, investment banking, mergers & acquisitions and leveraged buyout training topics. Enhance your skills and master the content required by Wall Street investment banks, M&A, research, asset management, credit, and private equity firms.
Views: 17649 wstss
Return on Investment (ROI) | Managerial Accounting | CMA Exam | Ch 11 P 2
 
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Residual income, common fixed cost, Return on investment, ROI, segment margin, traceable fixed cost Present value of single amount, present value of annuity, ordinary annuity, annuity due, future value of annuity, future value of annuity, return on investment, net present value, NPV, internal rate of return, IRR, payback period, cost of capital, capital budgeting, simple rate of return, Ratio analysis, book value per share, return on stockholders equity, return on equity, payout ratio, retention ratio, financial statement analysis, profitability ratio, long term solvency ratio,
Cost of Capital and Cost of Equity | Business Finance
 
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http://goo.gl/qQjWG8 for more free video tutorials covering Business Finance. This video explains two important concepts of business finance- cost of capital & cost of equity. First part of the video discusses on cost of capital drawing an example of a firm in terms of debt and equity. The cost of capital primarily depends upon the use of funds not the source. Next, the video briefly discusses on cost of equity referring the returns that investors holding shares in a firm require subsequent to an explanation on SML approach and dividend growth model. Moving on the video also asks to calculate the cost of equity for an example of extremely prices shares. Step by step calculation has shown and ways to find out some important parameters are demonstrated visibly. Good understanding on cost of capital; cost of equity & there in between relationship as well as having knowledge on different methods of calculation is imperative to become an expert on today’s business finance and accountancy.
Views: 147788 Spoon Feed Me
Residual Income | Managerial Accounting | CMA Exam | Ch 11 P 3
 
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Residual income, common fixed cost, Return on investment, ROI, segment margin, traceable fixed cost, decentralization, cost center, profit center, investment center,Present value of single amount, present value of annuity, ordinary annuity, annuity due, future value of annuity, future value of annuity, return on investment, net present value, NPV, internal rate of return, IRR, payback period, cost of capital, capital budgeting, simple rate of return, Ratio analysis, book value per share, return on stockholders equity, return on equity, payout ratio, retention ratio, financial statement analysis, profitability ratio, long term solvency ratio,
Business valuation using discounted cash flow P/E model CH exam ch 6 p 1
 
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Corporate valuation, CFA exam, MBA course, finance course, use fundamental valuation approach, Forecasting, Cash flow assessment , discounted cash flow, Technical analysis, cash flow valuation model, free cash flow, zero-growth perpetuities, constant-growth perpetuities, price-earnings , earnings multiples, abnormal earnings, ROA, return on assets, ROCE, return on common equity, fair value accounting, net present value of growth opportunities, NPVGO, permanent earnings, transitory earnings, Quality of earnings , earnings management, Sensitivity analysis, cpa exam
What is WACC - Weighted Average Cost of Capital
 
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Weighted average cost of capital (WACC) is a way to measure the required rate of return of a company. Companies can use it to measure the profitability of a project. Investors can use it in something like discounted cash flow. ★☆★ Subscribe: ★☆★ https://goo.gl/qkRHDf Investing Basics Playlist https://goo.gl/ky7CJq Investing Books I like: The Intelligent Investor - https://amzn.to/2PVhfEL Common Stocks and Uncommon Profits - https://amzn.to/2DAV8h9 Understanding Options - https://amzn.to/2T9gFSp Little Book of Common Sense Investing - https://amzn.to/2DfFGG2 How to Value Exchange-Traded Funds - https://amzn.to/2PWSkRg A Great Book on Building Wealth - https://amzn.to/2T8AKZ1 Dale Carnegie - https://amzn.to/2DDAk8w Effective Speaking - https://amzn.to/2DBncAT Equipment I Use: Microphone - https://amzn.to/2T7JxL6 Video Editing Software - https://amzn.to/2RQM1vE Thumbnail Editing Software - https://amzn.to/2qIUAgP Laptop - https://amzn.to/2T4xA8Z DISCLAIMER: I am not a financial advisor. These videos are for educational purposes only. Investing of any kind involves risk. Your investments are solely your responsibility. It is crucial that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments. Please consult your financial or tax professional prior to making an investment. #LearnToInvest #StocksToWatch #StockMarket
Views: 30046 Learn to Invest
Return On Equity (ROE)
 
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Video on return on equity (ROE).
Views: 146 Rick Lopez
Return on Equity
 
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» Investing Philosophy » Return on Equity Return on Equity Return on Equity is a measure of how efficient a company is at generating profits. In order to calculate the value of a company's stock we need to consider the profitability of that company. It is important to understand that profitability is not the same as profit.
Views: 85 ClimeAsset
What Is Return On Equity? | TIME
 
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And why should you care? Robert McIver, a managing director at Jensen Investment Management, explains what makes a strong return on equity. Read more about return on equity here: http://time. com/money/4077647/return-on-equity-explainer/ Subscribe to TIME ►► http://po.st/SubscribeTIME Get closer to the world of entertainment and celebrity news as TIME gives you access and insight on the people who make what you watch, read and share. https://www.youtube.com/playlist?list=PL2EFFA5DB900C633F Money helps you learn how to spend and invest your money. Find advice and guidance you can count on from how to negotiate, how to save and everything in between. https://www.youtube.com/playlist?list=PLYOGLpQQfhNKdqS_Wccs94rMHiajrRr4W Find out more about the latest developments in science and technology as TIME’s access brings you to the ideas and people changing our world. https://www.youtube.com/playlist?list=PLYOGLpQQfhNIzsgcwqhT6ctKOfHfyuaL3 Let TIME show you everything you need to know about drones, autonomous cars, smart devices and the latest inventions which are shaping industries and our way of living https://www.youtube.com/playlist?list=PL2862F811BE8F5623 Stay up to date on breaking news from around the world through TIME’s trusted reporting, insight and access https://www.youtube.com/playlist?list=PLYOGLpQQfhNJeIsW3A2d5Bs22Wc3PHma6 CONNECT WITH TIME Web: http://time.com/ Twitter: https://twitter.com/TIME Facebook: https://www.facebook.com/time Google+: https://plus.google.com/+TIME/videos Instagram: https://www.instagram.com/time/?hl=en Magazine: http://time.com/magazine/ Newsletter: time.com/newsletter ABOUT TIME TIME brings unparalleled insight, access and authority to the news. A 24/7 news publication with nearly a century of experience, TIME’s coverage shapes how we understand our world. Subscribe for daily news, interviews, science, technology, politics, health, entertainment, and business updates, as well as exclusive videos from TIME’s Person of the Year, TIME 100 and more created by TIME’s acclaimed writers, producers and editors. What Is Return On Equity? | TIME https://www.youtube.com/user/TimeMagazine
Views: 1635 TIME
7 Financial Ratios Every Investor Must Know
 
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There are a few key financial ratios that every investor must know. Whether you’re a buy-and-hold, long-term investor or trading stocks on a daily basis, the financial ratios I’m revealing will give you the tools to value stocks. Financial ratio analysis is the heart of what I did as an equity analysis for venture capital and private wealth managers. Some investment ratios are relatively easy like the price-to-earnings ratio and other price multiples. Others like the operating margin, net current asset value and enterprise value are more complex but so much more important. I’ll start off by defining and giving you examples in each of these important financial ratios. I’ll explain exactly what they mean and how to use them to pick stocks. I’ll then share the process to investment analysis I used for portfolio managers and some analysis risks you absolutely cannot ignore. I’ve got to warn you though. This isn’t the simple stock market analysis you see on TV. This isn’t about just listing a few stocks you can run out and buy. The tools and financial ratios I’ll show you can get complex but this is the real analysis done on Wall Street to pick stocks. This is what real equity analysts do. Don’t expect it to be the easy way out. Free Webinar – Discover how to create a personal investing plan and beat your goals in less than an hour! I’m revealing the Goals-Based Investing Strategy I developed working private wealth management in this free webinar. Step-by-step to everything you need for this simple, stress-free strategy. Reserve your spot now! https://mystockmarketbasics.com/free-investing-webinar YouTube Community Exclusive: 45% Off my Goals-Based Investing Strategy Course! Huge shift from traditional returns-based strategy of chasing stocks to a strategy designed around your goals – Coupon Code: COMMUNITY https://mystockmarketbasics.com/Communitydiscount It’s not enough to like a company’s products. You need to understand the financial health of the company. To make it easier to compare a company's health with other companies, we have to put numbers on this health, so that we can compare these numbers with the numbers of other companies... So now... how do we use numbers to assess company health? There are a lot of common types of financial ratios you need to understand like liquidity ratios, profitability ratios, and leverage ratios. Learn how to calculate financial ratios for stock market analysis with examples. We're doing these live streams every weekend, Sunday's at 1pm eastern/10am pacific. I love the interaction with community and it's a great opportunity to answer your money questions. Join the community and join us live! SUBSCRIBE to create the financial future you deserve with videos on beating debt, making more money and making your money work for you. https://peerfinance101.com/FreeMoneyVideos Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.