By allowing investors and analysts to measure the returns a company generates from its employed capital, ROCE serves as a magnifying glass over the business's operational effectiveness.| Liberated Stock Trader
The acceleration in the growth of earnings per share (EPS) is the foundation of selecting high-performing growth stocks.| 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
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
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
Interest rates significantly impact the stock market. Low rates mean cheap money for businesses and consumers, boosting demand for goods and services. This drives up companies' profits and stock prices. Conversely, rising rates make borrowing costlier, reducing spending and causing stock prices to fall.| Liberated Stock Trader
Learn stock market investing with the complete online stock trading course by Barry D. Moore, a certified financial analyst from the International Federation of Technical Analysts (IFTA).| Liberated Stock Trader
The prices of stocks are determined by the interactions of buyers and sellers in a free market. Stock prices constantly change as new information becomes available and investor expectations about the future change. Factors affecting stock prices are earnings reports, economic news, and government and central bank policy.| Liberated Stock Trader
