4 Types of Financial Statements and How to Read Them Easily
A simple guide to reading a company's four main reports and understanding the relationships between their figures.
EBITDA vs Net Profit: 7 Key Points and a Worked Example
Understanding EBITDA vs net profit through one worked example you can follow from start to finish. danieel.id Company's net profit rose from $536 thousand to $560 thousand. Its EBITDA grew…
How to Read an Income Statement (Easy Guide with Example)
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 Essential Types and How to Read Them Easily
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
A stock's price drops 30% in a month. Cheap, right? The answer depends on a question that often gets skipped: cheap compared with what? A falling price is not necessarily…
WACC Calculation: 5 Components, Formula, and Examples
Imagine opening a small coffee shop with money from three sources: a bank loan, cash from a friend who wants a "fixed cut" every year, and your own savings. The…
How to Calculate Cost of Debt: 3 Methods and Practical Examples
Two companies issue bonds with exactly the same tenor. One only needs to offer around 8% a year, while the other has to pay almost 13% before investors are willing…
How to Calculate Cost of Equity with CAPM: Formula and Examples
Money from shareholders never comes with an interest bill. No monthly installments, no maturity date. But make no mistake, that capital is anything but free: investors who put their money…
DuPont Analysis: How to Break Down ROA and ROE, with an Example
Picture two hardware stores at the end of the same street, both reporting an ROE of 15%. The first one makes a fat profit on every bag of cement it…
