profitability

RATIO ANALYSIS

Understanding ROCE,ROIC,ROE & ROA: What These Ratios Tell Us About Companies

Financial ratios are critical tools used to measure the financial performance of companies. They provide investors with insights into the profitability and efficiency of a company’s operations. Learn about the four most widely used return-based financial ratios: ROCE, ROIC, ROA, and ROE, and how they can provide insights into a company’s profitability and efficiency. Understand what good, reasonable, and bad ratios are, and how they compare with inflation and bank rates.

Understanding ROCE,ROIC,ROE & ROA: What These Ratios Tell Us About Companies Read More »

EV/Sales Ratio

Understanding Enterprise Value to Sales Ratio(EV/Sales) and Its Importance in Financial Analysis

Enterprise Value to Sales Ratio (EV/Sales) is a fundamental financial ratio that provides insight into how efficiently a company is generating revenue relative to its overall value. In this post, we will explore the concept of EV/Sales ratio, its interpretation, and the factors that affect it. We will also discuss how it can be used in financial analysis and compare it to other valuation ratios.

Understanding Enterprise Value to Sales Ratio(EV/Sales) and Its Importance in Financial Analysis Read More »