Finance Articles

Important concepts and topics on finance and financial analysis.

Analysis of Financial Statements

Guide to financial statement analysis The main task of an analyst is to perform an extensive analysis of financial statements.  In this free guide, we will break down the most important methods, types, and approaches to financial analysis. This guide is designed to be useful for beginners and advanced finance professionals, with the main topics...

EBIT vs EBITDA

What is the difference between EBIT and EBITDA? The difference between EBIT and EBITDA is that Depreciation and Amortization have been added back to Earnings in EBITDA, while they are not backed out of EBIT. This guide on EBIT vs EBITDA will explain all you need to know! EBIT stands for Earnings Before Interest and...

IPO Process

What is the IPO Process? The Initial Public Offering IPO Process is where an unlisted company sells new or existing securities and offers them to the public for the first time. Prior to an IPO, a company is considered to be private – it has a smaller number of shareholders, limited to accredited investors (like angel investors/venture capitalists and...

WACC

Definition of WACC A firm’s Weighted Average Cost of Capital (WACC) represents its blended cost of capital across all sources, including preferred shares, common shares, and debt.  The cost of each type of capital is weighted by its percentage of total capital (debt to equity ratio). WACC is used in financial modeling as the discount rate...

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