What is technical analysis? Technical and Fundamental Analysis are the two most common ways of performing research on any trading vehicle (incl. stocks, commodities, currencies, ETFs). Traders use these tools to evaluate investments and spot trends, which indicate good opportunities for trading. Fundamental analysis tries to weigh all the information Read more…
We all know happy customers come back to do more business with our company. They also provide priceless word-of-mouth marketing by sharing their experience with others. Clients who rate our products and services as highly satisfactory are usually the ones that promote us to their colleagues, friends, and family. This Read more…
When we are trying to optimize the experience for our customers, there are many metrics we can track and aim to improve. The Customer Lifetime Value (CLV) shows us how much money a customer will bring to the business on average over the entire time they remain a paying client. Read more…
Customer Churn is one of the most essential metrics for any company with a subscription-based model. It shows the rate at which customers are leaving and switching their subscriptions to someone else. It’s paramount to understand and analyze churn, as even a slight increase in the churn rate can have Read more…
The EBITDA Multiple is the most common method venture capitalists, and financial analysts use to value businesses as investment opportunities. If we plan to acquire a company or sell our own, EBITDA can be a great starting point for measuring the potential value in a sale. When we enter negotiations Read more…
It’s relatively easy for most businesses to analyze the day-to-day operational marketing and sales metrics like conversion rates, cost of sale, and others. However, when it comes to customer retention, it proves to be a more challenging task. Many companies struggle to define customer retention within their business model, let Read more…
Most ERP and accounting software solutions out there can generate decent standard reports. However, we often need more than that. One way to approach the preparation of more specific statements is to do it in Excel. We can export the data from our systems and prepare a template for the Read more…
Understanding the Gordon Growth Model for Stock Valuation The Gordon Growth Model (GGM) is a method for the valuation of stocks. Investors use it to determine the relationship between value and return. The model uses the Net Present Value (NPV) of future dividends to calculate assets’ intrinsic value. It’s the Read more…
In a previous article, we explored Linear Regression Analysis and its application in financial analysis and modeling. You can read our Regression Analysis in Financial Modeling article to gain more insight into the statistical concepts employed in the method and where it finds application within finance. This article will take Read more…
The Cash Ratio represents a measurement of the liquidity of a company. It evaluates the ability of the business to cover short-term obligations with cash and cash equivalents alone. It is particularly useful to creditors when deciding how much money they are willing to loan to a company. Suppliers also Read more…
