IFB26: Combining Earnings Yield and the Return on Capital Formula

Welcome to episode 26 of the Investing for Beginners podcast. In today’s show, we will discuss the return on capital formula by Joel Greenblatt. The Magic Formula is a great formula that helps identify companies with a low P/E ratio and a great return on capital. This show will continue some discussion of numbers and […]

IFB17: Cash Flow Statement: Operating Activities, Investing, and Financing

Welcome to session 17 of the Investing for Beginners podcast. In today’s session, we will be discussing a very interesting topic that is near and dear to my heart, an in-depth analysis of the cash flow statement. If you are not an accountant, never fear because this will help explain some of the terms and […]

ROE is a Valuable Metric but it Ignores The Debt Effect in its Calculation

A return on any investment refers to the return of capital achieved over a certain period of time. In financial statement analysis, we are using many different ratios to understand how effectively a company is using its assets or its resources to generate a profit and create value for its shareholders. Yet, some of the […]

A Complete Breakdown of the Diluted EPS Formula

The Diluted EPS formula is a valuation metric that financial analysts use to determine the quality of a company’s earnings per share with respect to its convertible securities. Diluted EPS is completely different than the basic EPS that you already know because it assumes that all the convertible securities of the company are converted into […]