Accounts Receivable and Accounts Payable Articulated with a Glass of Lemonade

If you want to evaluate the health of a company, backtest the accounts receivable and accounts payable of that company. AR (accounts receivable) and AP (accounts payable) are just one way to look at a company’s performance in the stock market, but what do AR and AP mean? 

How Does Backtesting Change the Financing Game? P.S. You’re Going to Win!

Everybody wants to travel back in time, and nobody wants to deal with the consequences of their present-time actions. That is why backtesting is a game-changer in financial investing! 

An Explanation of P/E with a Glass of Lemonade Relief

When you increase your vocabulary and understanding of financial knowledge, P/E is one of those essential concepts to nail down. If you’re new to investing, P/E is a financial metric otherwise known as the Price over Earnings ratio.

How does the S&P criteria work?

Introduction The S&P 500 has performed so spectacularly that some find its performance hard to believe. Are the stocks that make up the S&P being cherry-picked to only show the most successful performers? If the contents of this benchmark are not selected organically, its usefulness is

CAPM – Capital Asset Pricing Model

What does CAPM stand for? Capital Asset Pricing Model. The CAPM is a staple of nearly every finance course that focuses on the valuation of equity investments. Though it may be an excellent way to begin the process of teaching students how to effectively analyze securities, several assumptions

Investment Green Flags – Decreasing Shares Outstanding

Updated – 5.3.2024 There are several reasons a company may buy back its shares (green flag). Let’s explore why a company would, how to calculate it, the results, and the takeaways. Share Buyback Programs A company purchasing back its shares tends to increase the stock price for several