What Is Book Value Per Share (BVPS)? The book value per share (BVPS) is a ratio of the total asset value of a firm minus its liabilities divided by the number of outstanding common shares of stock. This metric shows the minimum value of a company’s equity and gauges a […]
Financial Analysis
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Diluted EPS – What Is Diluted Earnings per Share? Diluted EPS is used to measure the residual net profits distributable per share if all the convertible securities of a company were exercised. The metric used to assess the quality of a company’s earnings per share (EPS) if all convertible securities […]
What Is an Allowance for Doubtful Accounts? An allowance for doubtful accounts is a contra asset account used to reduce receivables in an amount estimated by management to be uncollectible. It is a contra asset account because it decreases the amount of an asset, in this case, accounts receivable. The […]
What Is Free Cash Flow Yield (FCFY)? The free cash flow yield (FCFY) is a financial solvency metric that compares a company’s predicted free cash flow per share to its market value per share. The ratio is computed by dividing free cash flow per share by the current share price. […]
What Are Accrued Expenses? Accrued expenses are liabilities a company needs to account for, but for which no invoice has yet been received and no payment has been made. An accrued expense, also known as an accrued liability, is an accounting concept. It refers to an expense that is recognized […]
What Is the Run Rate? The run rate is a company’s financial performance based on current financial data as a prediction of future performance. It is an extrapolation of current financial performance that assumes present conditions will persist. Sometimes, the term is used to refer to the average yearly dilution […]