The EBIT-EPS approach to capital structure is a tool businesses use to determine the best ratio of debt and equity that should be used to finance the business' assets and operations. At its core, the ...

Return on capital is a way to measure the profitability of a business. Simply put, it compares a company’s profits with the value of the assets used to produce them. It answers the question “How many ...

In the world of finance, a term that often emerges as a vital measure of a company’s financial health is EBIT, or Earnings Before Interest and Taxes. This metric, sometimes referred to as operating ...

A company’s capital structure refers to how it finances its operations and growth with different sources of funds, such as bond issues, long-term notes payable, common stock, preferred stock, or ...

Interest expense, net income, and EBIT are three related financial metrics that all have to do with the profitability of a company. Here's what you need to know about calculating each one, and how ...

Unlevered cost of capital is the theoretical cost of a company financing itself without any debt. This number represents the equity returns an investor expects the company to generate, excluding any ...

A company's net working capital is the amount of money it has available to spend on its day-to-day business operations, such as paying short term bills and buying inventory. Net working capital equals ...

Brian Beers is a digital editor, writer, Emmy-nominated producer, and content expert with 15+ years of experience writing about corporate finance & accounting, fundamental analysis, and investing.