New Video: V2D. Illustrated Shortcomings of the P/E Ratio (and other ratios)

The P/E ratio has numerous shortcomings - some of which relate to how earnings are calculated, and some of which relate to the nature of looking at one year's data (as the other ratios like EV/EBITDA and P/Sales) do as well. This video illustrates in brief issues that relate to looking at one year of data.

New Video: 10C. Gross Margin, Operating Margin and Net Margin

This video looks at the Income statement in a bit more detail - and in particular, looks at the gross, operating and net margins and what they can tell us about how the company makes money, its efficiency, and how these margins can be used to compare companies.

New Video: The Illustrated Leverage Example

This video illustrates how leverage works when debt is used to augment our own capital (the equity) to purchase an asset.

New Video: The Illustrated Cash Flow Statement Example

We have uploaded a new video - this video illustrates how the cash flow statement look and what it shows through an easy-to-follow example.

New Video: The Illustrated Balance Sheet Example

This video provides a sample Balance Sheet and illustrates the components of the Balance Sheet and what kinds of things can happen on the Balance Sheet.

New Video: The Illustrated Income Statement Example

This video goes through an income statement - what it typically looks like, what information it captures and how it can be affected for example by a change in revenues.

New Video: The Illustrated Compounding Example

We have uploaded a new video - on Compounding - that shows with a very simple example how compounding can work in practice.