Monthly Archives: December 2012

Introduction to Financial Ratios

A logical follow-up after working your way through Balance Sheets and P&L is to look into ways to gain additional insights in it. The most logical and easy way is to compare different periods, such as current year vs last year … Continue reading

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What is financial leverage and how does it work?

Ever wondered what was behind that dreaded term, financial leverage? Here’s a quick write-up how I see it work: RoE=RoA + (RoA-i)*(Debt/Equity) A bit of explanation to this mumbo jumbo: Return on Equity is the one we’re after: this is … Continue reading

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