MACRON IS TROLLING TRUMP ๐๐๐๐ญ
Trump said the U.S. ๐บ๐ธ destroyed everything, absolutely everything in Iran ๐ฎ๐ท last year during the 12-day war
President of France ๐ซ๐ท have responded to Trump saying,
โsix months ago, we were told that everything was destroyed and leveled. Today Iran is fighting like never before, Do you think we're fools again?" ๐๐๐
Financial education is a key attribute of success:
Sharing key financial ratios every person should know.
1) Current Ratio
Current Ratio= (Current Assets)/(Current Liabilities)
Measures short-term liquidity.
A ratio > 1 indicates good short-term liquidity.
2) Quick Ratio (Acid-Test Ratio)
Quick Ratio=(Current Assets - Inventory)/(Current Liabilities)
Provides a more conservative measure of liquidity.
Excludes inventory from current assets.
3) Profit Margin
Profit Margin = Net Income/Sales
Measures earnings capacity and efficiency of the company.
4) Return on Assets (ROA)
ROA=(Net Income)/(Total Assets)
Measures profitability relative to total assets.
Implicitly tells about the efficiency of asset usage.
5) Debt-to-Equity Ratio
D/E=(Total Debt)/(Total Equity)
Indicates financial leverage and solvency.
A higher ratio implies higher financial risk.
6) Asset Turnover
Asset Turnover= (Net Sales)/(Average Total Assets)
Measures efficiency in generating sales from assets.
A higher ratio indicates better asset utilization.
7) Earnings Per Share (EPS)
EPS=(Net Income)/(Average Number of Outstanding Shares)
Indicates profitability on a per-share basis.
8) Dividend Payout Ratio (DPR) and Dividend Yield (DY)
DPR=Dividends/(Net Income)
DY=(Annual Dividends per Share)/(Share Price)
DPR: Proportion of earnings paid out as dividends.
DY: Level of return from stock dividends.
9) Return on Equity (ROE)
ROE=(Net Income)/(Total Equity)
ROE=(Net Income)/(Net Sales)x(Net Sales)/(Total Assets)x(Total Assets)/(Total Equity) - DuPont Decompositon
Measures profitability relative to shareholders' equity.
10) Return on Invested Capital (ROIC)
ROIC=NOPAT/(Average Invested Capital)
NOPAT=EBITx(1-T)
Invested Capital = Debt + Equity Financing
Measures efficiency of capital investments.
P.S. What are your favorite financial ratios?
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