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

Dividend Yield

The dividend yield ratio shows the earnings distributed to stockholders related to the value of the stock, as calculated on a per-share basis. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the cash flow statement. Continue reading

Dividend Payout Ratio

The dividend payout ratio shows the portion of earnings distributed to stockholders. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the income statement and cash flow statement. 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

Return on Equity Du Pont

Return on equity (ROE) measures profitability related to ownership. Management at Du Pont came up with Return on Equity (Du Pont), an approach that showed that return on equity depends on ROA and the equity multiplier. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the financial statements. Continue reading

Return on Equity

Return on equity (ROE) measures profitability related to ownership. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the financial statements. Continue reading

Return on Assets Du Pont

Return on assets (ROA) is a percentage of the after-tax income as compared to the total assets of the company. Management at Du Pont came up with Return on Assets (Du Pont), an approach that determines the impact of asset turnover and profit margin on profits. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the financial statements. Continue reading

Return on Assets

Return on assets (ROA) is a percentage of the after-tax income as compared to the total assets of the company. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the income statement and balance sheet. Continue reading

Profit Margin

The profit margin shows the relationship between net income (profit) and sales. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the income statement. 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