The accounts payable turnover ratio quantifies how often a company pays off its suppliers within a specific period. To calculate it, one divides the total purchases made on credit by the average accounts payable for the same period.| Liberated Stock Trader
Most stocks are considered liquid assets because they are traded on open exchanges. But not all stocks are liquid. Penny stocks trading on over-the-counter (OTC) exchanges can have few buyers and sellers, making them illiquid, high-risk investments.| 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
A balance sheet is a financial statement showing a company's assets, liabilities, and shareholders' equity at a specific time. Assets are anything of value that a company owns, including cash, accounts receivable, inventory, and property. Liabilities are any debts or obligations a company owes, such as accounts payable, loans, and leases.| Liberated Stock Trader
Cash flow is the lifeblood of a company, and the cash flow statement shows how much money was generated and spent during a given period, which makes it invaluable for investors looking to invest in a company.| Liberated Stock Trader
Legal insider trading happens when corporate insiders trade their own company's stock following SEC reporting rules. Illegal insider trading, in contrast, involves trading a public company's stock based on nonpublic, material information.| Liberated Stock Trader
