A business is only worth the profit that it will generate for its owners from now until doomsday, discounted back to the present, adjusted for inflation. As the “report card” of those earnings, income statement will help determining the price you should be willing to pay for a business.
Income statement, also called profit and loss [...]
Revenue does not come in at the same time as costs have to go out. This is the main problem facing by most of business companies and the whole point about cash flow. Proper management of cash flow is important in the smooth running, survival and success of a business.
The statement of cash flow is [...]
Earnings per Share allows us to compare different companies’ power to make money. It is the portion of a company’s profit allocated to each outstanding share of common stock. A positive trend of EPS shows that the company is finding more ways to make more money.
Earnings per Share can be calculated by subtracting the dividends [...]
