Return on Assets is a ratio of the net income of a company divided by the amount of assets it has on the books. It can also be synonymous with Return on Investment (ROI), at least at a corporate level.
Theoretically this gives analysts an idea of how much profit a company could generate by buying more equipment or other assets, or how efficiently they use the assets in which they have invested. Comparing companies in a specific industry to their peers with ratios such as this one can be illuminating.
If a company is using a high percentage of its net income year after year to reinvest in the company by buying and upgrading assets, instead of using this profit margin in other ways, and the return on assets is not very high, the shareholders or board members might use this information to influence the company to take a different direction with the use of profits. Other options might include paying out more dividends to investors, liquidating some assets to invest in different ones, and so forth.
Ratio call spreads are options strategies where the investor combines purchased calls and short calls at the same expiration
If an employer chooses to make an annual contribution into a SEP IRA, it must be made by the date of Federal Income Taxes
Generally the deadline for contributions is the tax filing deadline, with extensions
The IRS imposes certain rules on Keogh Plans, which includes vesting restrictions. Different employers have different
A 457 is only slightly different than a 401(k), but the differences can be important
Volatility is a measure of the variance, deviation, or movement of a stock. Volatility is all the extra movement of a...
Cash Flow-to-Debt Ratio compares the size of a company’s cash flow from operations to the size of its debt
Companies with significant operations or sales abroad will be affected by changes in foreign currency exchange rates
Earnings is another word for the net income of a company. It is one of the most important numbers in corporate finance
Housing bonds are issued by state and local governments as a way to raise revenue that can help local banks and....