Balance Sheet Template This balance sheet template provides you with a foundation to build your own company’s financial statement showing the total assets, liabilities, and shareholders’ equity. Here is a screenshot of the balance sheet template: Download the Free Balance Sheet Template Enter your name and email in the form below and download the free…
What is Owner’s Equity? Owner’s Equity is defined as the proportion of the total value of a company’s assets that can be claimed by its owners (sole proprietorship or partnership) and by its shareholders (if it is a corporation). It is calculated by deducting all liabilities from the total value of an asset (Equity =…
Working Capital Template This working capital template allows you to calculate working capital using the following formula: Working capital = current assets – current liabilities Here is what the template looks like: Download the Free Working Capital Template Enter your name and email in the form below and download the free template now! Working capital…
How to Create an Excel Waterfall Chart In Excel 2016, Microsoft finally added a Waterfall chart option. It’s a great way to visually show the effect of positive and negative cash flows on a cumulative basis. If you’re working in Excel 2013 or earlier version, please follow the instructions below as a workaround to build…
What is the Diluted EPS Formula? The Diluted EPS formula is equal to net income less preferred dividends, divided by the total number of diluted shares outstanding (basic shares outstanding plus the exercise of in-the-money options, warrants, and other dilutive securities). Diluted EPS Formula: Diluted EPS = (net income – preferred dividends) / (weighted average…
What is Equity Value? Equity value, commonly referred to as the market value of equity or market capitalization, can be defined as the total value of the company that is attributable to equity investors. It is calculated by multiplying a company’s share price by its number of shares outstanding. Alternatively, it can be derived by…
What is the Gordon Growth Model? The Gordon Growth Model – otherwise described as the dividend discount model – is a stock valuation method that calculates a stock’s intrinsic value. Therefore, this method disregards current market conditions. Investors can then compare companies against other industries using this simplified model. Myron J. Gordon (Source: Globe and…
What is the Terminal Growth Rate? The terminal growth rate is the constant rate at which a firm’s expected free cash flows are assumed to grow indefinitely. This growth rate is used beyond the forecast period in a discounted cash flow model, from the end of the forecasting period in perpetuity, we will assume that…
What is Economic Value Added (EVA)? Economic Value Added (EVA), sometimes known as Economic Profit, is a measure based on the Residual Income technique, which measures the return generated over and above investors’ required rate of return (hurdle rate). EVA serves as an indicator of the profitability of projects in which a company invests. Its…
