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Fundamental Analysis

Technical Analysis vs Fundamental Analysis

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The difference between technical analysis vs fundamental analysis may not be clear to many Singaporeans especially to those who do not invest. In my earlier post, I had introduced both fundamental analysis and technical analysis. This post is mainly to highlight the key differences between the two investing approaches.   What’s Good About Fundamental Analysis Vs Technical Analysis Pros of ... Read More »

What Is Technical Analysis

Technical analysis is good to give you a sense of what will be the next trend of stock price. But it is never good enough because Mr. Market is always and often irrational. Both Sean Seah and myself learnt to use automated trading system tools more than 9 years ago and both of us didn’t fare well despite we were ... Read More »

Learn About Profitability Ratios

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The profitability ratios assess a company’s ability to earn profits on sales, assets and equity. These financial ratios are useful to measure a company’s performance. These ratios are considered to be favorable when they improve over a trend line or are comparatively better than the results of competitors. When using profitability ratios, it is best to compare a company’s results ... Read More »

Why Return on Equity Is Important To Value Investors

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Return on Equity (ROE) is one of the financial ratios under Profitability. It calculates how many dollars of profit a company generates with each dollar of shareholders’ equity. Sometimes, ROE is also known as “return on net worth.”    Formula of Return of Equity ROE = Net Income/Shareholders’ Equity   For example, Company A generated $150k in net income this ... Read More »

What Is Return on Assets

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The return on assets (ROA) is one of the five financial ratios classified under Profitability Ratio. It measures the return earned on total assets employed in the business. The higher the return, the more productive the company is in utilizing her resources. This return refers to the net income divided by the average total assets, which represents the simple average ... Read More »

Operating Profit Margin

net profit margin

The Operating Profit Margin Ratio is another profitability ratio. It shows the proportion of revenues left after making the payment for the operations unrelated to the direct production of goods and services. Hence, it is also referred to as income from operations. It shows the margin left after paying the expenses related to the cost of overhead, manufacturing, selling and ... Read More »

Gross Profit Margin Ratio

net profit margin

The Gross Profit Margin Ratio is one of the profitability ratios which shows how efficiently the company has generated revenues from the sale of its goods and inventories. It measures the amount of profit generated after deducting the direct expenses related to the production of goods and services. So, what about the meaning of gross profit? Gross profit is basically ... Read More »

What Is Net Profit Margin Meant To You

net profit margin

Net profit margin is one of the profitability ratios. It measures a company’s ability to generate income relative to revenue, balance sheet assets and operating costs. A higher net profit margin shows more efficiency of the company at converting its revenue into actual profit. This ratio is a useful way of making comparisons between companies in the same industry, for ... Read More »

What Is PE Ratio Or Price Earnings Ratio

fundamental analysis

The PE Ratio or price earnings ratio or price to earnings ratio is the same. Value Investors like to use this valuation method to assess what the market is willing to pay for a stock based on its current earnings. A value investor can use this ratio plus other indicators to assess if a company’s stock price is overly priced ... Read More »

EPS | What Is Earnings Per Share

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EPS or Earnings per share is what value investors will always look into. Earnings per share is basically the portion of a company’s profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company’s profitability.   Why EPS Is Important? EPS Growth is an important measure of management performance because it shows how ... Read More »