Finance Articles
In-depth, free articles on financial analysis, valuation, investing, corporate finance, and financial markets — no paywalls, no sign-ups.
15 articles
What Is Operating Cash Flow? Formula, Calculation, and What It Reveals
Operating cash flow strips away accounting adjustments to show whether a business truly generates cash from its core operations — the most reliable signal of financial health that net income can't match.
What Is Dividend Yield? Formula, Calculation, and What It Signals
Dividend yield tells you how much income you earn per rupee invested in a stock — but not all high yields are good news.
What Is Terminal Value? The Number That Makes or Breaks a DCF
Terminal value often accounts for 60–80% of a company's DCF enterprise value — here's what it is, how to calculate it using both the Gordon Growth Model and exit multiple method, and where analysts get it wrong.
What Is the P/E Ratio? How to Read and Use Price-to-Earnings
The most widely quoted stock valuation metric — here's what it actually measures, how to calculate it, and when not to trust it.
Revenue vs Profit: What's the Difference and Why It Matters
Revenue is what a business earns. Profit is what it keeps. Here's the exact difference, the three layers of profit on every income statement, and why the gap between them is the most important number in business.
Working Capital Explained: Formula, Calculation, and What It Tells You
Working capital reveals whether a business can cover its near-term obligations — here's the formula, how to calculate it, and what the number actually means.
Gross Margin vs Operating Margin vs Net Margin: What Each Reveals About Profitability
Three percentages on every income statement — each one measures profitability at a different layer. Here's what each reveals and how to read all three together.
Free Cash Flow vs Net Income: What's the Difference and Why It Matters
Net income and free cash flow can tell two completely different stories about the same company — here's how to read both and know which to trust.
FCFF vs FCFE: What's the Difference and When to Use Each
Two ways to measure free cash flow — which you pick determines your discount rate, your model structure, and the valuation you get. Formulas, worked examples, and when to use each.
What Is Return on Equity (ROE)? Formula, DuPont Analysis, and How to Interpret It
ROE tells you how efficiently a company converts shareholder capital into profit — here's the formula, a full DuPont decomposition, sector benchmarks, and the leverage trap to watch.
What Is WACC?
WACC is the minimum return a company must earn to satisfy all investors — here's how the formula works, how to calculate it step by step, and why it drives DCF valuation.
Enterprise Value vs Equity Value: Key Differences Explained
Most valuation mistakes trace back to mixing up these two numbers — learn the exact distinction, the EV bridge formula, and which multiples use which.
What Is the Debt-to-Equity Ratio? Formula, Interpretation, and Use in Finance
The D/E ratio measures how much of a company is financed by creditors versus shareholders — formula, worked example, sector benchmarks, and key limitations explained.
What Is EBITDA? Meaning, Formula, and Why Investors Use It
EBITDA explained: what it means, the two calculation methods, why analysts use it for M&A and valuation, and the key limitations you need to know — with a worked example.
Stocks vs Bonds: Key Differences Every Investor Should Know
Ownership vs lending, risk profiles, return types, income structure, and how stocks and bonds fit together in a portfolio — a complete investor comparison.