Financial education
Find a specific answer to a money question. Explore cash flow, borrowing, housing, saving, investing and the cost of running a business.
Evaluate the judgment involved in splitting capital spending between maintenance and growth, and use sensitivities instead of assuming depreciation is a proxy.
Compare interest-bearing debt and total-liability leverage ratios, then examine how buybacks and negative equity can make a familiar ratio misleading.
Compare EBIT-based interest coverage under hypothetical earnings and interest changes, while distinguishing accounting coverage from actual debt-service cash.
Calculate gross and net debt under different cash-availability assumptions, and examine why netting does not remove maturity or contractual risk.
Analyze return on equity using average book capital, and see how distributions, losses, and asset recognition can alter the ratio without changing profit.
Decompose hypothetical return on equity into margin, asset turnover, and the equity multiplier, and distinguish operational improvement from added leverage.
Construct a hypothetical ROIC with clearly defined operating earnings and capital, then test the impact of goodwill, excess cash, and tax assumptions.
Analyze new-share issuance through ownership percentages and hypothetical value, showing why dilution of ownership does not always mean destruction of value.
Explain weighted-average shares and potential dilution using hypothetical EPS calculations, while avoiding the assumption that EPS equals a cash distribution.
Trace a hypothetical repurchase through EPS, earnings, and cash, and see why per-share growth alone cannot establish that a buyback created value.
Compare hypothetical P/E ratios using reported and normalized earnings, and examine why low multiples, losses, and cyclical profits require caution.
Construct a hypothetical EV-to-EBITDA comparison and examine why leases, adjustments, and capital intensity can make apparently equal multiples differ.
