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Tag: impairment

How to Value Stocks? – P/E or EV/EBIT?

What is P/E or EV/EBIT? Value investing is one of the ways to compound your wealth. Starting out as an investor, the common valuation metric I use is price-to-earnings-ratio (PER). This is a very simple approach of taking the “share price divided by the earnings per share”. It can be calculated using “market capitalization divided…
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How Increasing Trade Receivables Days Is an [Potential] Early Warning Sign

What are trade receivables and trade receivable days? Trade receivables is nothing more than sales that were done in credit. Depending on industries, trade receivable credit terms could be 30 days to 90 days. As a business, you would like to have very low trade receivables or none. Trade Receivable Days is simply nothing more…
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