Financial Literacy

What is Return on Assets (ROA)?

Return on Assets (ROA) is the way to measure how much profit a given company generates with the current assets on its books.

What is Revenue vs. Profit?

Revenue vs. profit is a commonly asked question for both businesses and potential investors. It’s important to understand a company’s financial health.

What is the S&P 500?

The S&P 500 is an index that tracks the performance of the 500 largest publicly traded companies on U.S. stock exchanges.

What is Payroll?

The payroll is a critical business function that includes the records of wages, deductions and net pay for all workers and employees.

What is a Business Partnership?

A business partnership is an entity in which two or more individuals or parties agree to operate and manage a business together.

What is a Balanced Investment Portfolio?

An investment portfolio is a collection of investments owned by an individual or entity. In a portfolio, all investments are managed collectively.

What is a Profit and Loss Statement (P&L)?

A profit and loss statement (P/L) is a financial statement summarizing revenues, costs and expenses incurred during a given period, such as the fiscal year.

What is Price-to-Sales (P/S) Ratio?

The price-to-sales ratio (P/S) is one of the most commonly used ratio between the price of a company’s share and its sales per share.