A company with higher net margins than its peers often shows strong management and competitive advantages, which can build wealth for shareholders over time. In this guide, we’ll cover everything you need to know about net margins, including how to calculate them, what factors influence them, and what a good net margin is for different …
A company with higher gross margins than its peers often demonstrates efficient production processes or strong pricing power, which can drive long-term profitability and shareholder value. In this guide, we’ll cover everything you need to know about gross margins, including how to calculate them, what factors influence them, and what a good gross margin looks …
What is the EV/Revenue Ratio? The EV/Revenue ratio, or the Enterprise Value-to-Revenue ratio, is a particularly useful valuation multiple when analyzing companies that aren’t yet profitable, such as early-stage tech companies or businesses with inconsistent earnings. By focusing on revenue, the EV/Revenue ratio offers a snapshot of how much investors will pay for each dollar …
Stock screeners can be valuable tools for investors because they help filter through thousands of stocks based on specific criteria. This saves investors time by quickly finding the best stocks that fit their investing strategy. Two popular options for stock screeners are TIKR and Finviz. In this article, we’ll compare these two screeners so you …
When a company consistently sees stronger operating margins than its peers, it might indicate that the business has a competitive advantage and can outperform its peers and build wealth for its shareholders. In this guide, we’ll cover everything you need to know about operating margins, including how to calculate them, why they matter, what a …
In investing, understanding a company’s profit margins helps to provide a clear picture of how much profit a company retains at different stages of its income statement. These metrics reveal whether a business can control costs, beat competitors, and generate sustainable shareholder returns. In this guide, we’ll break down the three types of profit margins, …