What metrics are commonly used to evaluate companies in the food and beverage sector?

July 9, 2024 No Comments

A: Some of the key metrics most commonly used to evaluate companies in the food and beverage sector are profitability measures, such as operating margin and net profit margin, and debt measures such as the current ratio. The food and beverage sector includes food processing

What metrics can be used to evaluate companies in the wholesale sector?

July 9, 2024 No Comments

A: The largest wholesale distribution industries include motor parts, commercial equipment, electronics, petroleum products, groceries and pharmaceuticals. Some notable electronics distributors are Sonepar SA, WESCO, Rexel and Graybar. McLane, Core-Mark, H.T Hackney Company and Eby Brown are prominent wholesalers serving grocery stores. AmerisourceBergen, Cardinal Health

What price-to-earnings ratio is average in the utilities sector?

July 9, 2024 No Comments

A: As of December, 2014, the average price-to-earnings (P/E) ratio for the utilities sector is approximately 23, which is considerably well below the overall market average P/E of 70. The forward P/E, based on projected earnings for utility companies, is 18 for the general utilities

What is the formula for calculating the price-to-earnings (P/E) ratio in Excel?

July 9, 2024 No Comments

A: The price-to-earnings ratio, or P/E ratio, is a valuation ratio used in fundamental analysis. The ratio compares a company’s market price per share to its earnings per share, or EPS. To calculate a company’s P/E ratio, simply divide its market price per share by

What is the formula for calculating working capital in Excel?

July 9, 2024 No Comments

A: Working capital is used in fundamental analysis to determine a company’s financial health and efficiency in the short-term. A company’s working capital is calculated by subtracting its current liabilities from its current assets. Explaining the Working Capital Formula in Excel To compare the efficiency

What is the difference between the standard error of means and standard deviation?

July 9, 2024 No Comments

A: The standard deviation, or SD, measures the amount of variability or dispersion for a subject set of data from the mean, while the standard error of the mean, or SEM, measures how far the sample mean of the data is likely to be from

What is the difference between work in progress (WIP) and raw materials in accounting?

July 9, 2024 No Comments

A: Raw materials and works in progress (WIP) are distinct categories in financial accounting for business inventory. Each applies to a different stage in the production process. The first stage in the production process involves gathering raw materials, or basics. When labor or other capital

What is the difference between work in progress and work in process?

July 9, 2024 No Comments

A: In general, the terms “work in progress” and “work in process” are used interchangeably to refer to products midway through the manufacturing or assembly process. Most commonly referred to as “work in progress,” it represents one of several production stages that must be carefully

What is the Directional Movement Index (DMI) formula and how is it calculated?

July 9, 2024 No Comments

A: Legendary trader and author J. Welles Wilder Jr. introduced the directional movement index, or DMI, in 1978. Wilder wanted an indicator that could measure the strength and direction of a price movement so traders could avoid false signals. The DMI is actually two different

What is the fixed asset turnover ratio and why is it important?

July 9, 2024 No Comments

A: The purpose of any business is, of course, to generate profit, so there are a variety of metrics that business owners and investors use to assess the efficiency of a company’s business model. While many popular metrics, such as the net profit margin, measure

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