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Reading Financial Reports For Dummies, 3rd Edition
book

Reading Financial Reports For Dummies, 3rd Edition

by Lita Epstein
December 2018
Beginner
384 pages
10h 9m
English
For Dummies
Audiobook available
Content preview from Reading Financial Reports For Dummies, 3rd Edition

Chapter 11

Testing the Profits and Market Value

IN THIS CHAPTER

Bullet Getting a handle on the price/earnings ratio

Bullet Diving into the dividend payout ratio

Bullet Examining return on sales

Bullet Reviewing return on assets

Bullet Understanding return on equity

Bullet Working with margins

Well, did the company make any money? Everyone, and I mean everyone with a financial stake in the company — executives, investors, debtors, employees — wants the answer to that question. Investors especially want to know whether the company's stock is worth the price they have to pay.

You may think the answer is a simple yes or no, but the answer always depends on many factors. How well did the business make use of its resources in order to make a profit? Was that profit high enough based on the resources the firm had on hand and compared with that of similar companies? Did the company pay out a fair share of its earnings to its investors? ...

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Publisher Resources

ISBN: 9781119543954Purchase book