Price to Earnings or PE Ratio

The price to earnings ratio (or PE ratio) relates market price to earnings per share. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the financial statements. Continue reading

TIE Ratio

The TIE Ratio shows the ability to pay interest charges out of earnings. (TIE stands for times interest earned.) This interactive tutorial walks you through the calculations, including where to find the numbers on the financial statements. Continue reading

EBITDA Coverage

The EBITDA coverage ratio shows if earnings are able to satisfy all financial obligations including leases and principal payments. (EBITDA is short for earnings before interest, taxes, depreciation, and amortization.) This interactive tutorial walks you through the calculations, including where to find the numbers on the financial statements. Continue reading

Gross Profit Ratio

The gross profit ratio indicates how much of each sales dollar is available to meet expenses and profits after merely paying for the goods that were sold. This interactive tutorial explains the gross profit ratio by walking you through the steps, including where Sales and Cost of Goods Sold are on the Income Statement. It lets you use your own numbers — great for checking homework answers! Continue reading

Earnings Per Share

Earnings per share (EPS) is a way to relate income to ownership on a per share basis, and is used in evaluating share price. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the financial statements. Continue reading

Basic Earning Power Ratio

The basic earning power ratio (or BEP ratio) compares earnings apart from the influence of taxes or financial leverage, to the assets of the company. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the financial statements. Continue reading

Cash Flow: Quiz

Study terms from the cash flow statement like net cash, prepaid expenses, payment of dividends, and more with this fun quiz. Continue reading

Balance Sheet: Quiz

Study balance sheet terms like assets, depreciation, goodwill, and more with this fun quiz. Continue reading

Balance Sheet

Learn about the structure and contents of a balance sheet by examining one for the fictitious company Bogus Manufacturing, Inc. Continue reading