"Leveraged profit expansion" is a concept that describes how a company uses leverage—primarily debt or fixed costs—to magnify its potential profits and accelerate growth or returns.
Posts tagged as “Return on Equity (ROE)”
(2/6) Finance: A Manager’s Guide to Accounting and Financial Management
For the professional manager, finance is the empirical discipline that translates operational activity into measurable economic outcomes. It is the language of value creation, resource allocation, and risk control.
Return Ratios
For investors, managers, and analysts, mastering these metrics—particularly Return on Investment (ROI), Return on Assets (ROA), and Return on Equity (ROE)—is fundamental to making informed decisions and driving value.
Financial KPIs
Financial KPIs, or Key Performance Indicators, are a set of metrics used to measure a company's financial health, performance, and progress toward its goals. They are essential tools for business owners, managers, and investors to gain insight into profitability, liquidity, and operational efficiency.
Understanding Financial Reporting
Financial reporting stands at the heart of this transparency, acting as a structured and standardized method of conveying an organization's financial health to stakeholders.
Investor Ratios: Price/Book
For investors seeking to understand a company's valuation, the Price/Book (P/B) ratio is a fundamental metric.
When assessing dividend-paying stocks, it’s crucial to evaluate the dividend quality in addition to the dividend yield itself.
How To Avoid Dividend Traps?
Dividend traps offer a high upfront yield, but the company's fundamentals are weak, making the dividend unsustainable in the long-term.
Ratio Analysis for Strategic Analysis
Ratio Analysis can become financial microscope to examine financial health, performance, and efficiency of any business organization.
How to Invest in a Good Business?
There are many ways to invest in a good business. A good business means a business that is performing well on the market in the long-term.
Profitability Ratios: Return on Capital Employed (ROCE)
Return on Capital Employed (ROCE) is ratio between Net Profit Before Interest and TAX, and Capital Employed - Share Capital plus Retained Profit.
Profitability Ratios: Return on Equity (ROE)
Return on Equity (ROE) is ratio between Net Profit Before Interest and TAX. and Equity. It compares Net Profit Before Interest and TAX with Equity.
5 Different Types of Ratios in Details
After a brief introduction to five different types of ratios in the last article, let’s take a look at those accounting ratios with more details.