Profitability 1. Gross Margin Definition Gross Margin is the percentage of Gross Profit out of sales or Revenue. Gross Margin (A: Dec. 2013 ) = Gross Profit (A: Dec. 2013 ) / Revenue (A: Dec. 2013 ) = (Revenue – Cost of Goods Sold) / Revenue = (204.71 – 40.471) / 204.71 = 164.2 / 204.71 = 80.23 % A positive Gross Profit is only the first step for a company to make …
Read MoreWhat Is a Financial Statement ? Part 1 of 2
Financial Statements Consists of Balance Sheet -What a company owns, what it owes & what is left over Income Statement -Sales and Expenses, Profit or Loss Cash flow Statement -Sources, uses and balance of Cash Fundamentals 1.Earnings Per Share (EPS) Definition Earnings Per Share (EPS) is the amount of earnings per outstanding share of the companys stock. In calculating earnings per share, the dividends of preferred stocks need to subtracted …
Read MoreValuation Method – Earnings Power Value (SATS as Case Study)
Dear friends, Today, I would like to share a valuation method known as the Earnings Power Value popularised by Professor Bruce Greenwald from Columbia University. Columba University, by the way, in some sense is where Value Investing was given birth to when Profession Benjamin Graham and David Dodd started formulating and teaching the ideas there. As no valuation method is perfect, Prof Bruce Greenwald prefer to look at a company’s current …
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