A stock buyback occurs when a company purchases its own shares on the open market. This process reduces the number of shares available, often boosting the stock's value.| Liberated Stock Trader
Return on Common Stockholder's Equity (ROCE) is a financial ratio measuring the profitability relative to the common equity shareholders have invested in a company.| Liberated Stock Trader
Economic value added, or EVA is a sophisticated measure for assessing a company's financial performance and creating shareholder wealth by measuring the residual income after deducting the cost of capital.| Liberated Stock Trader
Investors use the income statement to understand a company's key metrics, revenue, expenses, profit, and operating costs. It is one of the most important documents investors use to understand a company's financial performance.| 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
To read a balance sheet effectively, start by focusing on three main sections: assets, liabilities, and equity. Assets represent what the company owns, liabilities show what the company owes, and equity reflects its net worth.| Liberated Stock Trader