Making the Most of the Q Ratio
Be it an internal or external valuation, there’s a bevy of options to value a business with ratios. Examples include price-to-earnings, price-to-sales or EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization).
Valuation Reserve Requirements
According to FitchRatings, over the past 12 months ending August 2026, there were 109 defaults by 89 entities, compared to the same period ending July 2026 where 83 entities saw 105 defaults. With businesses (especially life insurers) exposed to asset…
Understanding Inflation Accounting
According to the July 12, 2026, Consumer Price Index Release from the U.S. Bureau of Labor Statistics, the 12-month inflation rate rose by 3.4 percent and the month-over-month measure rose by 0.1 percent in July 2026…
Understanding the Exchange Ratio
With more than $57 trillion in mergers and acquisitions, according to the Institute for Mergers, Acquisitions & Alliances, understanding…
Understanding Horizontal Analysis
Horizontal Analysis provides businesses a method to examine financial statement entries by looking at the documents’ number for a specific accounting time frame compared to the same length of a historical period for the same accounting line item…
Understanding the EV/2P Ratio
When it comes to raw materials, especially for fossil fuels, it’s essential to evaluate existing and potential production capabilities for such companies. Using the EV/2P Ratio is a powerful tool when evaluating fossil fuel-related…
Understanding Cash EBITDA
While Cash EBITDA isn’t recognized by generally accepted accounting principles (GAAP), it’s a way for company owners and investors to account for deferred revenue during valuation modeling. This financial metric…
Understanding Qualifying Dispositions
With 57 percent of public companies offering their workers employee stock purchase plans (ESPPs), according to the National Association of Stock Plan Professionals (NASPP), understanding how qualifying dispositions work is an essential…
Understanding the Equity Multiplier
Whether you are an investor, an owner or an internal financial analyst, understanding how the equity multiplier works and how to interpret it is a helpful skill.
Defining An Activity Cost Driver
An activity cost driver is anything that causes a company’s variable costs to either reduce or grow. Since measuring an activity cost driver is a way to streamline the administration of managing production costs, it’s…