Category Archives: Accounting & Finance

This category shares my knowledge and experience with Accounting & Finance

What is Expected Return? How to calculate it

The expected return (also known as expected gain) is the profit or loss that an investor anticipates on an investment that has known historical rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these results.

Continue reading What is Expected Return? How to calculate it

What is Return on Investment (ROI)? How to calculate it

Return on Investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment relative to the cost of the investment in percentage. It can be used to compare the efficiency of a number of different investments by directly measuring the amount of return on a particular investment, relative to the investment’s cost.

Continue reading What is Return on Investment (ROI)? How to calculate it

What is stock / investment Beta (β) coefficient? How to calculate Beta

Beta (β), meaning in stocks and investment, also known as risk coefficent, is a measure of a stock’s volatility in relation to the overall market and can be used to measure a stock’s level of risk in the stock market.

Continue reading What is stock / investment Beta (β) coefficient? How to calculate Beta

What is Equity Market Capitalization (EMC)?

EMC, usually referred to as market capitalization or market cap, is the total value of a publicly traded company’s outstanding common shares owned by stockholders. It is calculated by multiplying the price of a stock by its total number of outstanding shares. For example, a company with 20 million shares selling at $50 a share would have a market cap of $1 billion.

Continue reading What is Equity Market Capitalization (EMC)?

What is Cash Flow? Cash Flow Management

For business owners and financial managers, cash flow management is crucial to the survival of the business and it is associated with that business throughout its operation, so the role of cash flow management is very important. in the business activities of the enterprise. So what is cash flow? What is net cash flow, and is there any method to manage cash flow in the business effectively? Let’s find out.

Continue reading What is Cash Flow? Cash Flow Management

What is Enterprise Value (EV)?

Enterprise value (EV), a.k.a total enterprise value (TEV) or firm value (FV), is a metric to reflect the market value of a business and is often used as a more comprehensive alternative to EMC (equity market capitalization). It is a sum of claims by all claimants: creditors (secured and unsecured) and shareholders (preferred and common). Enterprise value is one of the fundamental metrics used in business valuation, financial analysis, accounting, portfolio analysis, and risk analysis.