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Home Categories Financial Statements Inventory Sell Days (DSI) is the average number of days it takes a firm to sell inventory. Deferred income is a liability on a company’s balance sheet that represents an advance payment by its customers for goods or services that have not yet been delivered. Diluted earnings per share (diluted earnings per share) calculates a company’s earnings per share if all convertible securities were converted. Cash flow from operations over a period of time can be determined by both direct and indirect methods. An income statement is an official public statement of a company’s profitability, usually published quarterly. EBIT (earnings before interest and taxes) represents the company’s net income before income tax and interest expenses. The enterprise multiple, also known as the EV-to-EBITDA multiple, is a ratio used to determine the value of a company. In accounting, explicit costs are ordinary business expenses that are tangible and easily traceable; they appear in the general ledger. If financial analysis is carried out internally, it can help fund managers make future business decisions or analyze historical trends of past success. Financial statement analysis is used by internal and external stakeholders to evaluate the performance and value of a business.