Search results “Return on common equity analysis”
ROE (Return On Equity) Explained
What ROE means when evaluating a business and how to calculate ROE?
Views: 44269 KCLau Money
Return on Equity (ROE) - Explained in Hindi
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: 14653 Asset Yogi
Return On Equity explained
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!
Return on Common Equity CFA exam ROCE ch 5 p 6
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
What is Return on Equity? - MoneyWeek Videos
When you analyse a company, it’s easy just to focus on how much profit a company is making. But that can be a dangerous trap. A business might generate a decent profit, but still deliver a poor return on shareholders equity. So in this video, Ed Bowsher explains how to calculate 'return on equity' and why it could be useful to you.
Views: 17774 MoneyWeek
Stockholders Equity (Rate Of Return On Common Stock Equity, C/S Shareholder Profitability)
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: 9920 Allen Mursau
Rate of Return on Common Stockholder's Equity ROE
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Abnormal earnings valuation and Return on common equity CFA exam ch 6 p 3
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
What Is Common Equity Made Up Of?
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: 1184 ehowfinance
Stockholders' Equity (Financial Accounting)
Thsi video explains the concept of Stockholders' Equity (aka Shareholders' Equity or Owners' Equity) in Financial Accounting. Stockholders' Equity is defined, and examples of several common Stockholders' Equity accounts are provided. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 57136 Edspira
Ratio Analysis: Return on Capital Employed (ROCE)
This short revision video introduces the concept of Return on Capital Employed.
Views: 77477 tutor2u
The Return on Equity Ratio
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
Dividend Discount Model (DDM) - Constant Growth Dividend Discount Model - How to Value Stocks
http://www.subjectmoney.com http://www.subjectmoney.com/definitiondisplay.php?word=Dividend%20Discount%20Model In this lesson we are teaching you how to price stocks using the Dividend Discount Model (DDM). We explain the concept of the dividend discount model (DDM) and show you the necessary assumptions along with how to get the cost of equity (discount rate) using the Capital Asset Pricing Model CAPM. We also teach you the constant growth dividend discount model and then show you how to tailor the dividend discount model according to the what is expected of the company in the future. Please don't forget to subscribe, rate and share our videos. Please also visit our website at http://www.subjectmoney.com and http://www.excelfornoobs.com https://www.youtube.com/user/Subjectmoney https://www.youtube.com/watch?v=n76Pz3HOBPo http://www.roofstampa.com hjttp://roofstampa.com http:/www.subjectmoney.com http://www.excelfornoobs.com
Views: 110675 Subjectmoney
What is return on equity (ROE)? | Investopedia Academy
Return on equity (ROE) is the amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. ROE is expressed as a percentage and calculated as: Return on Equity = Net Income/Shareholder's Equity Net income is for the full fiscal year (before dividends paid to common stock holders but after dividends to preferred stock.) Shareholder's equity does not include preferred shares. Also known as "return on net worth" (RONW). Take the Investopedia Academy 'Find Great Value Stocks' course: http://bit.ly/2DNEk6R INVESTOPEDIA ACADEMY is expert instruction from Investopedia. Self-paced, online courses that provide on-the-job skills—all from the world’s leader in finance and investing education. Website: https://academy.investopedia.com/ Facebook: https://www.facebook.com/investopedia Twitter: https://twitter.com/investopedia
Views: 20671 Investopedia Academy
Return On Equity ROE
Views: 29500 Tiến Đạt Vũ
Stockholders Equity (Rate Of Return On Common Stock Equity, Trading On Equity, ROE, ROA)
Accounting for rate of return on common stock equity and trading on equity by using borrowed money or issuing preferred stock to obtain money, the money is then invested in assets, the assets are used to generate income at a higher rate on investment in excess of the borrowing rate which increases the rate of return on common stock equity, example is for deteriming ROE & applying trading on equity, Rate of Return of C/S equity = (net income - P/S dividend/C/S equity - P/S par), Trading On Equity (Borrowing money or issuing P/S) & obtaining a higher rate on the money used Corp-A has improved return on C/S Equity thru proper use of Debt & Preferred Stock financing: Shareholders win if: ROA greater than the Cost of financing assets, then return on C/S Equity exceeds rate of return on total assets, Corp-A is trading equity at a gain, money obtained from Bondholders & Preferred Stockholders earns enough to pay the interest & preferred dividend & leaves a profit for C/S Stockholders, Shareholders Lose if: If the cost of financing is higher than the rate earned on the assets , the company is trading on equity at a Loss & Stockholders lose, detailed example by Allen Mursau
Views: 3304 Allen Mursau
Return on Common Stockholder's Equity
Prepared by Paige Paulsen
Views: 2914 Paige Paulsen
EPS Earnings Per Share Explained in 11 minutes - Financial Ratio Analysis Tutorial
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: 100573 MBAbullshitDotCom
Stock Valuation Tutorial in 3 Easy Steps: Stock Value, Valuing Stocks, Finance Stock Valuation
Clicked here http://www.MBAbullshit.com/ and OMG wow! I'm SHOCKED how easy.. How valuable is a share of stock? How much is the fair value of a share? Simply how much must you accurately be inclined to purchase a stock? In principle, the value in a share of stock depends on any one of the following: 1) Book Value or Net Asset Value, 2) Net Present Value of our stock's cash flow (as a part of firm returns), and 3) Net Present Value of your share's dividends. With regard to the first method earlier mentioned, it is crucial to realize the book value in a business enterprise's assets could be not the same as the market value. Market value is founded on what real people are proposing to purchase assets, but book value is influenced by purchase price less depreciation; based upon using generally accepted accounting principles. For instance, a company might have a building and autos which were constructed and attained at an expenditure of 1 million dollars. Having said that, on account of depreciation, accountants establish that the assets at this recent time are valued at only $700,000. Moreover, the company carries debt of $100,000. Consequently, the net asset value of this company is $600,000. If ever the company has 1,000 outstanding shares of stock, then each share of stock would have a net asset value of $600. With this, using the first technique, the value of our aforementioned stock is $600. With regard to net present value on the stock's earnings as a share of company earnings, we are able to principally just say that stock value is driven by present value of the total number of future earnings, which can be then dependent to some sizable extent around the net present value calculation. In this case, if ever the net present value of all of our stock's long run returns is established as being $500, then our second method would signify that $500 is the fair value of our stock, whether or not it is actually lower than the net asset value of $600 as discovered at the beginning technique previously mentioned. Lastly, let's take a look at employing the net present value of the stock's dividends. Contrary to valuing a stock by acquiring the net present value of earnings, we get hold of the worth of the stock by acquiring the net present value of dividends, many times with regard to cash dividends. Why dividends versus earnings? To some owners or shareholders, it does not really matter how much a company earns, if the business enterprise does not ultimately give away the cash to the owners. Because there are alternative approaches on stock valuation, dissimilar professionals maintain their personal choice regarding which technique is most appropriate... depending on their personal unique orientations. http://www.youtube.com/watch?v=SGoKkmBgB_Q http://mbabullshit.com/blog/stock-valuation-in-27-minutes-valuing-stocks/
Views: 168807 MBAbullshitDotCom
Tangible Common Equity, or TCE
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: 588 Ethan Lindsey
How to calculate Return on Equity
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: 23572 InvestmentPropCoach
How to find the Expected Return and Risk
Hi Guys, This video will show you how to find the expected return and risk of a single portfolio. This example will show you the higher the risk the higher the return. Please watch more videos at www.i-hate-math.com Thanks for learning !
Views: 205123 I Hate Math Group, Inc
Return on Equity Ratio (ROE Formula, Examples) | Calculate Return on Equity
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/
Views: 369 WallStreetMojo
Why Do You Use Net Income to Calculate Return on Assets (ROA)?
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
Profitability Ratio Analysis: Financial Ratio Analysis Explained
Profitability Ratio Analysis: Financial Ratio Analysis Explained Support AccoFina's Patreon if you are a Fan or Believer in my work, https://patreon.com/accofina Time Markers: 1) The Profit Margin 1:17 2) The Gross Profit Margin 5:47 3) The Return on Assets 14:28 4) The Return on Equity 21:47 5) Different ways to conduct ratio analysis 27:56 6) Key ideas with all ratio analysis 29:06 1) THE PROFIT MARGIN Tells us how much profit is generated from sales. Percentage of sales revenue that ends up as profit Good indicator of cost control and/or pricing power. Profit Margin Formula: Profit Margin = Net Income / Sales Revenue Example Where do we find the Required Inputs? Net Income: From the Income Statement Sales Revenue: From the Income Statement How to Interpret Changes in the Ratio: Expenses have changed in relation to sales... * Management is effective with cost control * Economies of scale are being utilised. Sales Revenue has changed in relation to expenses... * Change in pricing power (bargaining position with consumers) * Change in state of the economy and aggregate demand 2) THE GROSS PROFIT MARGIN (Very important for resellers and manufacturers) Profit between cost of inventory and sales price. How much sales revenue left to cover profit and all other expenses. Gross Profit Margin Formula: Gross Profit Margin = (Sales Revenue - Cost of Goods Sold) / Sales Revenue Where do we find the Required Inputs? Sales Revenue: From the Income Statement Cost of Goods Sold: From the Income Statement How to Interpret Changes in the Ratio: Sales Revenue has changed in relation to cost of goods sold... * Change in pricing power (bargaining position with consumers) * Change in product or aggregate demand (without a flow through the supply chain yet) * Market competitive position and pressures Cost of Goods Sold has changed in relation to sales revenue... * Power within the supply chain * Change in supplier or production efficiency Changes in prices of particular commodity inputs 3) RETURN ON ASSETS Return generated by the assets for those who funded the assets. Insight into success of management in income generating asset allocation and utilisation. Return on Assets Formula: Return on Assets = (Income beforeTax + Interest Expense) / ((Assets at Start of Period + Assets at End of Period) / 2) Where do we find the Required Inputs? Income before Tax: From the Income Statement Interest Expense: From the Income Statement Assets at Start of Period: From the Previous Balance Sheet Assets at End of Period: From the Current Balance Sheet How to Interpret Changes in the Ratio: Profitability has changed in relation to the level of assets... * Management is getting ‘more from less’ in regards to assets * Management has made good asset allocation decisions in terms of revenue * Management has good control of costs in relation to expenses Previously mentioned reasons: e.g. economy, market power, competitive position Level of assets have changed in relation to profitability... * Assets may have suddenly increased through large, recent * CapEx Assets may not be being replaced or replenished at the same rate * Particular choice of depreciation/amortisation policies 4) RETURN ON EQUITY Return generated for the owners of the business, the common stockholders. Insight into success of any leverage used (when comparing to return on assets). Return on Equity Formula: Return on Equity = (Net Income - Preference Dividends) / ((Common Stockholder Equity at Start of Period + Common Stockholder Equity at End of Period) / 2) Where do we find the Required Inputs? Net Income: From the Income Statement Preference Dividends: From the Income Statement or Investor Relations Equity at Start of Period: From the Previous Balance Sheet Equity at End of Period: From the Current Balance Sheet How to Interpret Changes in the Ratio: Profitability has changed in relation to the level of common stockholder equity... * Management performance is changing in the eyes of, and on behalf of, the owners/employers * Previously mentioned reasons: e.g. economy, market power, competitive position, cost control, asset utilisation Common Stockholder Equity has changed in relation to profitability... * The level of liabilities have changed (and thus equity) * A stock issue or stock buyback (i.e. equity levels have changed) Subscribe to the Channel: https://goo.gl/84Sfeg Or just check out the Channel Page: https://goo.gl/yTj9Bs Most Popular YouTube Video: https://goo.gl/Jbv685 Latest YouTube Upload: https://goo.gl/wDM83Y 1) Website http://www.accofina.com 2) Amazon Author Page: http://www.amazon.com/author/axeltracy 3) Udemy Instructor Page https://www.udemy.com/u/axeltracy/ 4) Twitter http://www.twitter.com/accofina 5) Google+ http://plus.google.com/+accofina 6) Instagram https://www.instagram.com/axel_accofina/ 7) Facebook Page https://www.facebook.com/AccoFina.Page #Accounting #FinancialEducation #FundamentalAnalysis
Views: 52470 AccoFina
Financial Statement Analysis #6: Ratio Analysis - Market Value Measures
http://www.subjectmoney.com http://www.subjectmoney.com/articledisplay.php?title=Financial%20Statement%20Analysis%20and%20Ratios In this financial statement analysis lesson we cover ratios know as market value measures. Market value measures need the stock price to be calculated therefore they are useful for publicly traded companies. The ratios we cover are market to book ratio, book value, the pe ratio or P/E ratios or price to earnings ratio, the eps or earnings per share, enterprise value, market capitalization and enterprise value multiple. Please be sure the subscribe, rate & share our videos. Please also visit our website at http://www.subjectmoney.com and http://www.excelfornoobs.com https://www.youtube.com/user/Subjectmoney https://www.youtube.com/watch?v=GUVbPr88rOA
Views: 32502 Subjectmoney
Book Value per Share | Equity Ratio Analysis | Intermediate Accounting | CPA Exam FAR | Chp 15 p 8
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
What is Return on Equity (ROE)
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: 82 Tackle Trading
WACC, Cost of Equity, and Cost of Debt in a DCF
In this WACC and Cost of Equity tutorial, you'll learn how changes to assumptions in a DCF impact variables like the Cost of Equity, Cost of Debt. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" You'll also learn about WACC (Weighted Average Cost of Capital) - and why it is not always so straightforward to answer these questions in interviews. Table of Contents: 2:22 Why Everything is Interrelated 4:22 Summary of Factors That Impact a DCF 6:37 Changes to Debt Percentages in the Capital Structure 11:38 The Risk-Free Rate, Equity Risk Premium, and Beta 12:49 The Tax Rate 14:55 Recap and Summary Why Do WACC, the Cost of Equity, and the Cost of Debt Matter? This is a VERY common interview question: "If a company goes from 10% debt to 30% debt, does its WACC increase or decrease?" "What if the Risk-Free Rate changes? How is everything else impacted?" "What if the company is bigger / smaller?" Plus, you need to use these concepts on the job all the time when valuing companies… these "costs" represent your opportunity cost from investing in a specific company, and you use them to evaluate that company's cash flows and determine how much the company is worth to you. EX: If you can get a 10% yield by investing in other, similar companies in this market, you'd evaluate this company's cash flows against that 10% "discount rate"… …and if this company's debt, tax rate, or overall size changes, you better know how the discount rate also changes! It could easily change the company's value to you, the investor. The Most Important Concept… Everything is interrelated - in other words, more debt will impact BOTH the equity AND the debt investors! Why? Because additional leverage makes the company riskier for everyone involved. The chance of bankruptcy is higher, so the "cost" even to the equity investors increases. AND: Other variables like the Risk-Free Rate will end up impacting everything, including Cost of Equity and Cost of Debt, because both of them are tied to overall interest rates on "safe" government bonds. Tricky: Some changes only make an impact when a company actually has debt (changes to the tax rate), and you can't always predict how the value derived from a DCF will change in response to this. Changes to the DCF Analysis and the Impact on Cost of Equity, Cost of Debt, WACC, and Implied Value: Smaller Company: Cost of Debt, Equity, and WACC are all higher. Bigger Company: Cost of Debt, Equity, and WACC are all lower. * Assuming the same capital structure percentages - if the capital structure is NOT the same, this could go either way. Emerging Market: Cost of Debt, Equity, and WACC are all higher. No Debt to Some Debt: Cost of Equity and Cost of Debt are higher. WACC is lower at first, but eventually higher. Some Debt to No Debt: Cost of Equity and Cost of Debt are lower. It's impossible to say how WACC changes because it depends on where you are in the "U-shaped curve" - if you're above the debt % that minimizes WACC, WACC will decrease. Otherwise, if you're at that minimum or below it, WACC will increase. Higher Risk-Free Rate: Cost of Equity, Debt, and WACC are all higher; they're all lower with a lower Risk-Free Rate. Higher Equity Risk Premium and Higher Beta: Cost of Equity is higher, and so is WACC; Cost of Debt doesn't change in a predictable way in response to these. When these are lower, Cost of Equity and WACC are both lower. Higher Tax Rate: Cost of Equity, Debt, and WACC are all lower; they're higher when the tax rate is lower. ** Assumes the company has debt - if it does not, taxes don't make an impact because there is no tax benefit to interest paid on debt.
Return on Equity
» 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: 82 ClimeAsset
EPS, PE & Return on Common Stockholder's Equity
Prepared by Lynnette Yerbury
Views: 270 Paige Paulsen
Excel Finance Class 19:Profitablility Rations: Return On Equity & Return On Assets & DuPont Analysis
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: 27985 ExcelIsFun
Business Accounting : Understanding Return on Equity
A return on equity can be calculated by dividing the net income by the average shareholder's equity. Find out how to determine how well management is using funds from shareholders with information from a certified public accountant in this free video on accounting. Expert: Miranda Chook Bio: Miranda Chook is a CPA with expertise in international operations. Filmmaker: Bing Hugh
Views: 2040 eHow
Calculating Return on Equity (ROE) in Excel
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: 19022 OfficeToDo
Shareholders Equity, Dividend  Payout & Return on Common Equity for PepsiCo 2017
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: 10 Mary Michel Ph.D.
How To Compute Return On Equity
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: 5451 Two-Point-Four
Bond Valuation part 1
Views: 120609 Rahul Malkan
Cost of Capital and Cost of Equity | Business Finance
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: 129479 Spoon Feed Me
Decoding of Corporate FInancial Communications: Profitability & Risk Analysis
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
In Finance Terms, What Is Common Stockholders Equity?
In Finance Terms, What Is Common Stockholders Equity?. Part of the series: Advice On Investments. In financial terms, common stockholders have a very specific definition. Learn about common stockholders with help from a certified financial planner in this free video clip. Read more: http://www.ehow.com/video_12200080_finance-terms-common-stockholders-equity.html
Views: 143 ehowfinance
Abnormal earnings valuation of firm/stock CFA exam ch 6 p 2
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
Financial Analysis
An overview of common-sized financial statements and ratio analysis.
Views: 96 Russell Jacobus
Return on Equity ROE - What is Return on Equity?
What is Return on Equity and how is Return on Equity calculated? This is the Begin To Invest video definition series. Today's video is on Return on Equity, ROE. Return on Equity is the income a company generates related to its shareholder's equity. In this video we show you how to calculate ROE and discuss what it really means to have a high ROE compared to another company. For more visit: http://www.begintoinvest.com/definitions/return-on-equity-roe/
Views: 412 Begin To Invest
Return On Investment (ROI) or Yield... Finance Analysis on Your Next Property Investment
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: 21903 Your First Four Houses
Equity vs Debt - Hindi
What is Equity? What is Debt Investment & Fund Raising meaning? When you invest in an Asset or Business, you have mainly two choices to raise funds - Equity and Debt. Similarly, you can also invest in Equity Investment products such as Equity Shares, Mutual Funds, ULIP, ELSS, Private Equity, Venture Capital etc. or you can invest in Debt Instruments such as Loans, Corporate Bonds, Government and Infrastructure Bonds, Debt Mutual Funds & ULIPs etc. Related Videos: NPV (Net Present Value): https://youtu.be/SpHIBfPGwx8 IRR (Internal Rate of Return): https://youtu.be/x6eXfx2Tv-w Discount Rate: https://youtu.be/XqqD1d713W8 इक्विटी इन्वेस्टमेंट और फंडरेज़िंग क्या होता है? डेब्ट इन्वेस्टमेंट और फंडरेज़िंग का अर्थ क्या है? जब आप किसी संपत्ति या व्यापार में निवेश करते हैं, तो आपके पास फंड्स रेज़ करने के लिए मुख्य रूप से दो विकल्प होते हैं - इक्विटी और डेब्ट। इसी तरह, आप इक्विटी शेयर, म्यूचुअल फंड, यूएलआईपी, ईएलएसएस, प्राइवेट इक्विटी, वेंचर कैपिटल इत्यादि जैसे इक्विटी निवेश प्रोडक्ट्स में भी निवेश कर सकते हैं या आप लोन, कॉर्पोरेट बॉन्ड, गवर्नमेंट एंड इंफ्रास्ट्रक्चर बॉन्ड, डेब्ट म्यूचुअल फंड और यूएलआईपी आदि जैसे डेब्ट इंस्ट्रूमेंट्स में इन्वेस्ट कर सकते हैं। Share this Video: https://youtu.be/5CWrpR6mcFw Subscribe To Our Channel and Get More Property and Real Estate 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 the meaning of equity investment and fundraising? What is debt investment & fundraising? What is the definition of equity? What is debt? How funds are raised using equity or debt for asset or business? What are some common equity investment product? How does equity fundraising work? What is the concept of equity fundraising? What is the basic concept of equity and debt? How is the concept of equity and debt used in business? What is the difference between equity fundraising and debt fundraising? What options are there for equity or stock investments? Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Google Plus – https://plus.google.com/+assetyogi-ay Twitter - http://twitter.com/assetyogi Facebook – https://www.facebook.com/assetyogi Linkedin - http://www.linkedin.com/company/asset-yogi Pinterest - http://pinterest.com/assetyogi/ Instagram - http://instagram.com/assetyogi Hope you liked this video in Hindi on “Equity & Debt - Investment & Fundraising”.
Views: 63679 Asset Yogi
कैसे देखे Company का Balance Sheet? | Investing In Equity Shares | Pehla Kadam | CNBC Awaaz
Before investing in the share market, its important to know the financials of the company and equally important is its balance sheet analysis. Today, we find out how to do so while investing in shares? CNBC Awaaz is India’s number one business channel and an undisputed leader in business news and information for the last ten years. Our channel aims to educate, inform and inspire consumers to go beyond limitations, with practical tips on personal finance, investing, technology, consumer goods and capital markets. Policymakers and business owners alike have grown to trust CNBC Awaaz as the most reliable source with its eye on India’s business climate. Our programming gives consumers a platform to make decisions with confidence. Subscribe to the CNBC Awaaz YouTube channel here: https://goo.gl/g3rzrW Follow CNBC Awaaz on Twitter: https://twitter.com/CNBC_Awaaz Like us on our CNBC Awaaz Facebook page: https://hi-in.facebook.com/CNBCAwaazIndia
Views: 29292 CNBC Awaaz
Stocks for Beginners : How to Calculate Stockholder Equity
Return on stockholder equity is calculated by dividing net income by total equity. Calculate stockholder equity when evaluating a business with tips from an investment professional in this free video on financial planning. Expert: Phillip Beningoso Contact: www.wearehdtv.com Bio: Phillip Beningoso has a bachelor's of arts degree with a major in finance and a minor in economics and computer sciences from Kent State University. Filmmaker: Christopher Rokosz
Views: 3826 eHow