Report Analysis - How to Read the Statements

Return on Equity

Another performance ratio used in business is return on equity.  It is similar to return on assets except return on equity uses one section of the bottom half of the balance sheet.  This section is […]

Report Analysis - How to Read the Statements

Debt Ratio

Debt is a natural part of business.   The most volume (number of transactions) of debt occurs with the simple purchase of materials (inventory) or supplies on account.   Every business buys on account whether it is […]

Accounting Concepts and Principles

Treasury Stock

Those corporations doing well and flush with cash sometimes buy back stock from their investors. Once purchased back by the company the stock is called treasury stock. In large corporations the buy back often involves […]