This PPT slide, part of the 42-slide Finance and Valuation Basics PowerPoint presentation, presents a summary of various financial ratios, detailing their formulas and significance. Each ratio serves as a crucial metric for evaluating a company's financial health and operational efficiency.
The "Debt-to-equity ratio" indicates the proportion of company financing that comes from creditors versus shareholders, providing insight into financial leverage. The formula involves total liabilities and stockholders' equity, which helps stakeholders assess risk levels associated with the company's capital structure.
Next, the "Debt ratio" measures the extent of a company's leverage by comparing total debt to total assets. This ratio is essential for understanding the overall financial risk and the company's ability to meet its obligations.
The "Dividend payout ratio" highlights how much of a company's earnings are returned to shareholders as dividends. This ratio is calculated by dividing dividends per share by earnings per share, offering a glimpse into the company's profit distribution strategy.
The "Dividend yield ratio" reflects the return on investment for shareholders, calculated by dividing dividends per share by the market price per share. This metric can influence investment decisions, especially for income-focused investors.
The "Depreciation to PP&E" ratio assesses how aggressively a company is depreciating its property, plant, and equipment, which can impact financial statements and tax liabilities.
Lastly, the "Expense to sales" ratio provides insight into operational efficiency by comparing total expenses, including selling, general, and administrative costs, to sales revenue. This ratio is vital for understanding cost management and profitability.
Overall, these ratios collectively offer a comprehensive view of a company's financial standing, guiding potential investors and management in strategic decision-making.
This slide is part of the Finance and Valuation Basics PowerPoint presentation.
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M&A (Mergers & Acquisitions) Valuation Cost Management Capital Structure Dividend Yield Return on Investment Financial Risk Sales
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