Earnings Per Share (EPS): • Earnings Per Share (EPS) is a popular metric to analyze a company’s efficiency in making a profit from its outstanding share of stock. • Any organization with high earnings per share is regarded as more profitable than an organization with low earnings per share. • Earnings per share is the … Read more
Liabilities: o Liabilities are considered as the financial obligations owed to other organizations or people. o Liabilities are also considered as the debts owed to non-owners or creditors. o It can be also considered as an alternative to equity as a source of organizations’ financing. o Liability decreases with an in the accounting records debit … Read more
Asset: The asset is a thing or resource owned by any person, organization, or country with the expectation that it will generate surplus/benefit in monetary value in the future. “Assets are future economic benefits, the rights of which are owned or controlled by an organization or individual”- Finney &Miller “Assets are valuable resources owned by … Read more
Return on Equity (ROE): • It is the ratio that shows the proportion of profit in comparison with the net assets it holds. • It is useful for the performance comparison of similar firms/companies in terms of money. • It is the ratio of Net Income by Common shareholder’s equity Figure 1: Formula of ROE … Read more