"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”
(2/6) Finance: A Manager’s Guide to Accounting and Financial Management
November 4, 2025 |
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.
Growth Investing vs. Dividend Investing Using ETFs
October 4, 2025 |
The choice between Growth Investing vs. Dividend Investing is a fundamental decision for investors, with each strategy offering distinct trade-offs in terms of risk, return potential, and cash flow.
Return Ratios
September 27, 2025 |
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
August 30, 2025 |
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
August 6, 2025 |
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.
Financial Statement Analysis
July 30, 2025 |
It involves a comprehensive examination of a company's financial reports, primarily the Income Statement, Balance Sheet, and Cash Flow Statement, to gain insights into its financial health, performance, and future prospects.
Investor Ratios: Price/Book
July 2, 2025 |
For investors seeking to understand a company's valuation, the Price/Book (P/B) ratio is a fundamental metric.
Profitability Ratios: Return on Assets (ROA)
June 16, 2025 |
At its core, Return on Assets is a profitability ratio that reveals how much profit a company earns for every dollar of assets it owns.
Leverage
June 14, 2025 |
Financial leverage, also known as "gearing", is a core concept in finance that involves using borrowed money (debt) to finance assets or investments.
Leveraged Buyout Explained
June 11, 2025 |
The term "leverage" refers to the use of debt to increase the potential return on equity.
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?
June 20, 2024 |
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
April 8, 2024 |
Ratio Analysis can become financial microscope to examine financial health, performance, and efficiency of any business organization.
How to Invest in a Good Business?
August 20, 2023 |
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)
February 14, 2022 |
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)
February 12, 2022 |
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
February 5, 2022 |
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.