The Efficient Market Hypothesis is a theory that states that the global markets are always 100% efficient, i.e. that all prices are 100% accurate and that there is never any inefficiency. This means t...
Economies of Scale (EOS) is a term used to describe the increase in efficiency gained through an increase in the scale of operation. This is usually reflected either in increased productivity or throu...
Earnings Per Share, or EPS, is simply the profit of the firm per outstanding share. The higher the value of EPS, the more profitable the company is.The calculation for EPS is simply Net Income dividen...
EBITDAR stands for Earnings Before Interest, Taxation, Depreciation, Amortization and Rent. This is used over EBITDA when the firm in question has extremely high rental expenditure (airlines...
EBITDA stands for Earnings Before Interest, Tax, Depreciation & Amortization and is one of the most commonly used indicators of the profitability of a firm.The EBITDA calculati...
EBIT / Interest (sometimes known as the Interest Coverage ratio) is one of the key financial ratios used in assessing the creditworthiness of a corporation both by rating agencies and in debt-financed...
EBIT stands for Earnings Before Interest & Tax and is a common indicator of the profitability of a firm.The calculation is Operating Income + Stock-Based Compensation, or Revenue - Operating Expen...
Due diligence is the act of investigating any potential investment, usually through an auditor or an audit process. Due diligence is essential to any financial process, and the purpose of it is to ens...
A downgrade is when an asset, company or government has its rating lowered. Typically this will represent either a lowering of the quality of the asset or the increased likelihood of default on a corp...
The Dow Jones Industrial Average (commonly referred to as the Dow) is one of the benchmark indices used in the United States. It is the weighted market capitalization of 30 large corporations traded d...