Learning Centre

The Income Statement

A financial statement that measures a company’s financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenues and expenses through both operating and non-operating activities. It also shows the net profit or loss incurred over a specific accounting period, typically over a fiscal quarter or year. Also known as […]

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The Balance Sheet

A financial statement that summarizes a company’s assets, liabilities and shareholders’ equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders. The balance sheet must follow the following formula: Assets = Liabilities + Shareholders’ Equity This is an example of how

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S&P500 Utilities Stocks

Stock prices for companies in the utilities sector are affected by supply and demand, operating costs, government regulation, environmental factors, liabilities for environmental damage and general civil liabilities, and rate caps or rate changes. Although rate changes of a utility usually fluctuate in approximate correlation with financing costs due to political and regulatory factors, rate

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Gross Profit

In accounting, gross profit or sales profit is the difference between revenue and the cost of making a product or providing a service, before deducting overhead, payroll, taxation, and interest payments. Note that this is different from operating profit (earnings before interest and taxes). Net sales are calculated: Net sales = Gross sales Gross profit

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Revenue per Share

Revenue per Share is the amount of revenue per each outstanding of a company’s stock. Revenue per Share= Revenue/ shares outstanding eg Google has a revenue of 12,214,000 and 327,030 in shares outstanding, so therefore its revenue per share is given by (12214000/327030) = 37.35 Quarterly Revenue Growth An increase of a company’s sales when

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