Also known as the debt service ratio, The interest coverage ratio is a measure of how many times a company can pay the interest owed on its debt with EBIT. To calculate it, you simply divide EBIT (earnings before interest and taxes) by interest expense. A company with a low interest coverage ratio means it has fewer earnings available to make interest payments, which can imply solvency issues and could mean a company would be at risk if interest rates go up. Continue reading...
Earnings before tax (EBT) is used to look at cash flows after expenses but before taxes. In a world without tax, this is what earnings would look like. Taking advantage of an advantageous tax-event, or hiring a better CPA, or merging with a company that can reduce the tax implications of some regular transactions, can bring earnings closer to their before-tax amount. Earnings before tax from an accounting standpoint is net income (which is another word for earnings) with taxes added together with it. Continue reading...
An account balance is the amount either credited to or owed on a ledger assigned to a particular entity or line-item. The balance of an account is the net debit or credit assigned to it after all transactions have been documented for a current period. Transactions might be deposits, withdrawals, interest credited, fees, or other activity. The account in question could be a personal savings or checking account, or a ledger account at a business or institution, or another form of account, such as the macroeconomic concept of current national account. Accounts are said to be “in the red” when there is a net debit (negative) amount, and “in the black” when there is a net positive balance (net credit). Continue reading...
There will be a premium paid by investors for the right to establish positions using options. The price of the underlying security must move to a certain point for the options position to become profitable. The strike price of an options contract names the price that an investor can use to buy or sell the underlying security, but the breakeven price will be the strike price plus the amount of the investor’s premium or net debit. Breakeven price can apply to a multi-option strategy such as a spread, or to a single option position. Continue reading...
There are several (and a growing number) of ways to sell your bitcoin and/or convert it to cash. While many people treat bitcoin as an investment tool rather than a currency, it arguably remains more liquid than some investments with similar volatility. Exiting your position in bitcoin when you desire, at least for now, can be a convenient and fairly easy process. Many exchanges exist online that can help you convert bitcoin into any currency you would like. These function much like other currency exchanges in the world, but you should be careful to use one you believe is trustworthy. Researching the topic on social platforms that demonstrate trust through upvoting, such as Reddit, may help you learn more about what other people believe to be good ideas. The landscape is frequently changing, so finding up-to-date information is key. Continue reading...
A Vertical Spread involves the strategy of buying and selling an equal number of options on the same underlying security with the same expiration date, but different strike prices. Vertical Spreads can be both bullish and bearish, depending on your view of the underlying security. If you use calls, you are constructing a Vertical Bull Spread, and if you’re using puts, you’re constructing a Vertical Bear Spread. Continue reading...
A calendar spread is a strategy also known as a horizontal spread or time spread, in which the investor uses two options contracts, with the same strike price, on the same underlying security, but with different expiration dates. The trader will “write” (sell) the near-term one (front month) and hold the one with the more distant expiration date (back month) long. This is a debit spread, since the investor will pay more to establish this position than is received from the short sale of the near-term option: longer-term options have a greater time value than short-term options. Continue reading...
A bear put spread involves the use of two puts, one sold and one bought, at different strike prices, with the intention of profiting from declines in the underlying stock. A Bear Put Spread uses two put contracts, one long and one short, in such a way to achieve a maximum profit from modest downward movements in the underlying stock. A long put is purchased a strike price nearer the money that the short put contract. Continue reading...
With every day that passes, bitcoin is becoming a more usable and accepted form of payment for a variety of goods and services, even those in the mainstream economy. To be sure, it’s arguably a long way off from being able to use bitcoin for small purchases at your local coffee shop or for big purchases like buying a house, but it is not unfathomable. The financial company Visa (ticker: V) has been working with bitcoin wallet services and various cryptocurrency exchanges to make cryptocurrency debit cards easy to acquire and use. These cards are known by names such as the Shift Card, Bitwala, BitPay, and others, partially depending on the region of the world in which they can be used. These cards allow users to transfer funds from Bitcoin wallets and immediately convert them into spendable fiat currency wherever Visa debit cards are accepted. Customers can also withdraw national currencies from Visa debit ATM machines based on bitcoin and cryptocurrency exchange rates, which often fluctuate wildly. Continue reading...
A debit card is a financial tool that plays a fundamental role in the world of modern banking and personal finance. Often referred to as "check cards" or "bank cards," debit cards provide a convenient and efficient way for individuals to make purchases and access cash. In this article, we'll delve into what exactly a debit card is, how it works, and the associated fees, as well as explore the key distinctions between debit and credit cards. Continue reading...
Navigate the complex world of financial metrics with a deep dive into EBITA. This guide elucidates the essence of Earnings Before Interest, Taxes, and Amortization, offering insights into its applications and distinctions from EBITDA. By stripping away taxes, interest, and amortization, EBITA provides a clearer view of a company's core profitability. But how does it stand against standardized GAAP earnings? And where does it fit in the broader landscape of financial analysis? Equip yourself with the knowledge of EBITA and its role in the financial world, ensuring a more informed approach to investment decisions. Continue reading...
Earnings Before Interest, Taxes, and Depreciation (EBITD) is one method of viewing the earnings of a company with some of the typical expenses added back into it. It is not to be confused with its close cousin EBITDA, which also adds amortization back in. Amortization is essentially the same thing as depreciation, but amortization applies to intangibles such as debt principal amounts and intellectual property. Continue reading...
Earnings that are reported in a given year may differ for the same company if different accounting methods were used. Earnings are the revenues of the company minus the cost of good sold, expenses, and investment losses. If that seems like something that’s pretty cut-and-dried, and will look the same no matter who is doing the accounting… well, that’s not entirely correct. Earnings can be made to look different if different non-GAAP or pro-forma methods are used. If non-recurring expenses are ignored or amortized in a pro-forma accounting method, then earnings will not match up to the GAAP-based books. Continue reading...
Discover how Price Action Correlation Models can enhance your trading by leveraging sector-based stock movements. Learn about their implementation, advantages, and successful applications to boost your decision-making and achieve impressive returns Continue reading...
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In the complex world of finance, metrics like EBITDA Margin provide a straightforward way to assess a company's profitability. EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, is a powerful tool for understanding how efficiently a company generates profits from its core operations. Let's delve into what EBITDA Margin is, how it's calculated, its advantages, and its drawbacks. EBITDA Margin is a performance metric that focuses on the core financial health of a business by eliminating non-operating expenses. Continue reading...
Earnings power is mostly a concept that investors talk about rather than a quantifiable amount, but there is a Basic Earnings Power (BEP) ratio that some analysts use. BEP is the EBIT (earnings before interest and taxes) of a company divided by its total assets (net assets), which is also called Return on Total Assets (ROTA). Earnings power is similar to the concept of staying power when most investors use it; a company that has had strong earnings and growth, and that seems to have the skill and resources to keep earnings up well into the future, is said to have earnings power. Continue reading...
Step into the future of trading with Tickeron's AI Pattern Search Engine, where artificial intelligence meets market analysis to unlock a world of data-driven trade ideas. Dive into a universe where scanning the financial markets for patterns becomes as easy as a Google search, but with the precision and depth tailored for trading success. Continue reading...
The best way to make money with pattern trading is to use our premium tool, Real Time Patterns (RTP Stocks, ETFs) You will get real time signals to buy and/or sell stocks or ETFs based on intraday price information. RTP analyzes 39 types of patterns for stocks, penny stocks, and ETFs in real time with the following time-frames: 5min, 15 min, 30 min, 1hour, 4 hours, and 1 day. To access, from the menu bar, simply click the Trading tab, then click on Real Time Patterns. Continue reading...