Understanding the 4 Types of Company Financial Statements
A simple guide to reading a company's four main reports and understanding the relationships between their figures.
EBITDA vs. Net Profit: The Differences
Two profitability indicators with different purposes and how to read them together. The difference between EBITDA and net profit often feels confusing because both are used to discuss a company's…
How to Read a Company’s Income Statement
Learn the flow of revenue, costs, margins, EBITDA, EPS, and net profit through the example of the imaginary company danieel.id.
Company Financial Ratios: 5 Categories and How to Read Them
A guide to reading five categories of company financial ratios with formulas and examples of time series and industry comparisons.
Stock Valuation: 3 Methods, Formulas, and Practical Examples
Have you ever watched a stock price fall and immediately thought, “Wow, that's cheap!”? I prefer to invite us to pause for a moment: cheap compared with what? Stock valuation…
WACC Calculation: Formula and Cost of Capital Examples
When a company builds a factory or expands its business, the question is not just how much funding it needs. We also need to know what that funding costs. Understanding…
How to Calculate Cost of Debt: 3 Methods and Examples
When a company borrows money, our question is not just how much it owes, but how much that borrowing costs. Understanding how to calculate cost of debt helps us make…
How to Calculate Cost of Equity with CAPM: A Practical Guide
How do we calculate cost of equity when shareholders’ capital does not carry interest like a bank loan? I usually start with a simple question: what return should investors require…
DuPont Analysis: How to Understand a Company’s ROA and ROE
When looking at a company's ROA and ROE, we might immediately ask: are the numbers good or not? I prefer to follow up with another question: where do those results…


