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 ...

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 ...

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 ...

One of the most commonly used metrics in analyzing the financials of a company is the EBITDA or the Earnings before Interest, Taxes, Depreciation and Amortization. Many of the capital intensive ...