Using stock leverage, which involves trading stocks with a margin account, leveraged ETFs, or stock options, can be a double-edged sword. It has the potential to magnify both your gains and losses.| Liberated Stock Trader
The Net Profit Ratio is a key financial ratio for better investing, telling us how efficiently a company generates profit compared to its revenue and competitors.| Liberated Stock Trader
The three main types of financial statements are the balance sheet, income statement, and cash flow statement. Each one provides a different perspective on a company's finances.| Liberated Stock Trader
Over-leverage is using excessive debt to finance investments or business operations, leading to excessive risk. Financial risk increases as the level of debt exceeds the ability to generate sufficient returns to cover the interest payments and principal repayment obligations.| Liberated Stock Trader
Financial leverage refers to using borrowed funds to increase the potential return on investment. It magnifies potential gains and losses, vital to a company's capital structure.| Liberated Stock Trader
Total asset turnover is a financial metric used to assess a company's efficiency in using its assets to generate sales. It is a vital ratio for investors and analysts seeking to understand how well a company utilizes its asset base to produce revenue.| Liberated Stock Trader
The debt-to-capital ratio measures a company's financial stability and leverage by comparing its total debt to its capital base, including debt and equity. It provides insight into what proportion of a company's operations is financed by debt versus shareholders' equity.| Liberated Stock Trader