INTERMEDIATE · TRACK 7 · JUDGING A BUSINESS

Equity Analysis

Profitability, returns on capital, moats, and quality, separating great businesses from cheap ones.

Recommended first: Valuation Essentials

Your progress

0 / 16 completed

Tick lessons off as you go, saved in this browser, no account needed.

1
ROE
Return on equity
Return on Equity: Measuring Profit on Shareholder Capital
2
ROA
Return on assets
Return on Assets: How Efficiently a Business Uses Its Assets
3
ROIC
Return on capital
Return on Invested Capital: The Cleanest Measure of Quality
4
Margins
Gross to net
Gross, Operating, and Net Margins: What Each One Reveals
5
Debt/Equity
Leverage
Debt-to-Equity Ratio: Measuring Financial Leverage and Risk
6
Interest Coverage
Servicing debt
Interest Coverage Ratio: Can Earnings Cover the Debt Bill?
7
Economic Moat
Durable edge
Economic Moat: Four Sources of Durable Competitive Advantage
8
CAGR
Compound growth
Compound Annual Growth Rate: One Number for Multi-Year Growth
9
Growth
Revenue & earnings
Revenue and Earnings Growth: What Drives Sustainable Value
10
DuPont
Decomposing ROE
DuPont Analysis 5-Step: Decomposing ROE into Five Drivers
11
Cash Conversion
Cash cycle
Cash Conversion Cycle: How Long Cash Is Tied Up in Operations
12
Owner Earnings
True cash profit
Owner Earnings Buffett: What Cash Owners Can Actually Take Out
13
Liquidity Ratios
Current & quick
Current Ratio and Quick Ratio: Measuring Short-Term Liquidity
14
Altman Z
Distress score
Altman Z-Score: Predicting Bankruptcy Before It Happens
15
Piotroski F
Quality score
Piotroski F-Score: Separating Value Stocks from Value Traps
16
Working Capital
Operating efficiency
Working Capital Analysis: How Operating Cash Gets Trapped

NEXT TRACK · INTERMEDIATE

Financial Modeling

All knowledge paths Browse all concepts