Inspiring fundamental research – financial articles, shareholder letters, earnings call recaps, business wisdom, and much more.
Intrinsic Value: The True Worth of a Company
In the world of finance and investing, understanding the concept of intrinsic value is essential. Intrinsic value represents the underlying fundamental worth of an asset or a company, regardless of its current market price.
Profitability Ratios: Assessing Financial Performance
This article explains what profitability ratios are, their importance, how to measure profitability, and arguably the five most important ratios in financial analysis.
Operating Cash Flow Margin: Meaning, Formula, and Analysis
Operating cash flow margin is a key financial ratio that measures a company's ability to generate cash from its core operations. It assesses the percentage of operating cash flow relative to total revenue, providing insights into the company's cash generation efficiency.
Fundamental Analysis: Understanding the Basics
In the world of financial markets, investors employ various techniques and valuation methods to make rational and informed decisions. Fundamental analysis is one such approach that focuses on evaluating the intrinsic value of a security, such as stocks, bonds, or commodities.
Efficiency Ratio: Assessing Operational Effectiveness
One key metric used for this purpose is the efficiency ratio. The efficiency ratio provides insights into how efficiently a company utilizes its resources to generate revenue and control costs. In this article, we will explore the efficiency ratio, its formula, three common efficiency ratios, and what constitutes a good capital efficiency ratio.
Earnings Season Recap #25
This issue covers the latest trends and results from Constellation Software, Berkshire Hathaway, Walt Disney, and Airbnb.
Earnings Season Recap #24
This issue covers the latest trends and results from Moncler, Apple, MercadoLibre, and HelloFresh
Earnings Season Recap #23
This issue covers the latest trends and results from several of the world’s largest companies such as Amazon, Visa, Meta, Alphabet, and Microsoft.
Leverage Ratio: Understanding Financial Risk and Health
One key aspect of financial analysis is assessing a company's leverage ratio, which provides insights into its debt levels and the potential risks associated with them. This article delves into what a leverage ratio is, its formula, what constitutes a good leverage ratio, and the implications of specific leverage ratios.
Liquidity Ratio: Understanding and Analyzing Financial Stability
In this article, we will delve into the essence of the Liquidity Ratio and answer crucial questions like what a good current liquidity ratio is, how you calculate it, what it signifies if it’s less than 1, and which the most common liquidity ratios are.
Business Valuation: Determine a Company's True Value
Determining the value of a business is a crucial step in various scenarios, whether you're considering buying or selling a company, seeking investment opportunities, or planning for the future. Business valuation provides insights into the financial worth of a business and serves as a foundation for informed decision-making. In this article, we will explore different methods to value a business and shed light on key considerations when assessing its value.
What Are Financial Ratios?
Financial ratios are essential tools used by businesses, investors, and analysts to assess the financial health and performance of a company. These ratios provide valuable insights into various aspects of a company's operations, allowing stakeholders to make informed decisions.
Earnings Season Recap #21
Netflix’s price reductions, Amazon’s ads opportunity, JPMorgan, and BlackRock
Earnings Season Recap #20
Curated transcript quotes and slides from LVMH Q1 2023, Exxon Mobil ESG Update, and Zegna H2 2022