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Compounding Quality

Compounding Quality

Financial Services

Investing newsletter with over 300,000 subscribers | Volkswagen Ambassador

About us

We teach people how to invest in Compounding Quality stocks.

Industry
Financial Services
Company size
1 employee
Headquarters
New york
Type
Partnership
Founded
2022

Locations

Employees at Compounding Quality

Updates

  • Mergers & Acquisitions A crash course with everything you need to know - Module 1: Introduction - Module 2: Strategic Focus - Module 3: Why mergers fail - Module 4: Valuation - Module 5: Bid tactics - Module 6: Due diligence - Module 7: The Concept of Implementation - Module 8: Project management - Module 9: Developing the Implementation Plan - Module 10: Executing the Implementation Plan Credits for Professor Alexander Roberts, Dr William Wallace & Dr Peter Moles 📚 Grab the resource here: https://lnkd.in/gkYuQwnY

  • Investing Mega Infographic A full Investing Book in 12 pages. - 10 Profitability Ratios - 10 Cash Flow Ratios - 10 Balance Sheet Ratios - Profitability Analysis - Capital Allocation Metrics - Balance Sheet Analysis: - Capital Allocation 101 - Financial Statements 101 - How to analyze a 10-K - How to analyze a balance sheet - How to analyze an income statement - How to analyze a Cash Flow Statement 💡 You want to receive this PDF in high resolution? Grab it here: https://lnkd.in/e2e4bWX9

  • 10 Crucial Investing Ratios 1️⃣ Gross margin (GM) 🎯 What? Company's gross profit compared to its revenue 💡 Formula? Sales - COGS / Sales 2️⃣ EBIT Margin 🎯What? What percentage of sales remains as profit before tax and interest 💡 Formula? EBIT / Sales 3️⃣ Debt-to-Assets 🎯What? The total amount of debt a company has relative to its assets 💡 Formula? Debt / Assets 4️⃣ Debt-to-Equity 🎯What? Ratio used to calculate a company's financial leverage 💡Formula? Debt / Equity 5️⃣ CAPEX/Sales 🎯What? Measures the capital intensity of a company 💡 Formula? Capital Expenditures / Sales 6️⃣ Return On Equity (ROE) 🎯What? Indicates how profitable a company is in relation to its equity 💡 Formula? Net Income / Equity 7️⃣ Return On Invested Capital (ROIC) 🎯What? Shows you how efficiently a company is allocating capital 💡 Formula? NOPAT / Total Inv. Capital 8️⃣ Earnings Per Share (EPS) 🎯What? How much money a company makes for each share outstanding 💡 Formula? Net Income / Shares Outstanding 9️⃣ Free Cash Flow Realization 🎯What? Measures how much earnings are translated into free cash flow 💡 Formula? Free Cash Flow / Net Income 🔟 Price-to-Earnings Ratio (P/E) 🎯What? Ratio that compares a company's share price to its earnings per share 💡Formula? Price Per Share / Earnings Per Share Which ratio would you add?

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  • Finance Interview Questions & Answers Here’s what you’ll learn: • How do you value a company? • How do you determine the cost of equity? • How do interest rates affect financial markets? • What is the role of a financial analyst in a company? • How does inflation impact financial decision-making? • How would you assess the financial health of a company? • Can a company be profitable and still have cash flow issues? • And much more! 📚 Grab the free PDF file in high resolution here: https://lnkd.in/eMhRyMAS

  • Accounting Interview Questions Master these questions and get the job you deserve 1. How many types of business transactions are there in accounting? 2. Explain real and nominal accounts with examples 3. Which accounting platforms have you worked on? Which one do you prefer the most? 4. What is double-entry bookkeeping? What are the rules associated with it? 5. What is working capital? 6. How do you maintain accounting accuracy? 7. What is TDS? Where do you show TDS on a balance sheet? 8. What is the difference between ‘accounts payable (AP)’ and ‘accounts receivable (AR)’? 9. What is the difference between a trial balance and a balance sheet? 10. Is it possible for a company to show positive cash flows and still be in grave trouble? Source: Naukri Learning 📚 Want to learn more? Grab my free Financial Analysis Course here: https://lnkd.in/egJanESh

  • Financial Statement Analysis Learn to analyze: Balance Sheet Income Statement Cash Flow Statement In just 2 minutes! 1️⃣ Balance Sheet A balance sheet consists of: - Current Assets - Long-Term Assets - Current Liabilities - Long-Term Liabilities - Shareholders' Equity It shows what the company owns and owes, based on the formula: Assets = Liabilities + Equity Questions to consider: - How much debt does the company have? - Does the company have more current assets than current liabilities? - Is there a significant amount of goodwill on the balance sheet? 2️⃣ Income Statement An income statement displays the company's income and expenses: Structure: Revenue - COGS = Gross Profit - Operating Expenses = Operating Income - Non-Operating Income/Expenses = Pre-Tax Income - Taxes = Net Income Questions to consider: - Is the company profitable? - Are the costs of goods sold high compared to sales? - How much of the sales revenue is converted into net income? 3️⃣ Cash Flow Statement The cash flow statement includes: - Cash Flow from Operating Activities - Cash Flow from Investing Activities - Cash Flow from Financing Activities It shows the cash entering and leaving the company. Operating Activities: Net Income Non-Cash Changes Changes in Working Capital = Cash Flow from Operations Investing Activities: Capital Expenditures Acquisitions Proceeds from Sale of Investments = Cash Flow from Investments Financing Activities: Borrow/Repay Debt Issue/Repurchase Stock Pay Dividends = Cash Flow from Financing Questions to consider: - Are earnings effectively translated into operating cash flow? - Does the company have positive free cash flow (operating cash flow - CAPEX)? - Has the company increased its cash position compared to last year? Source: Mohamed Samir 📚 Did you like this? Grab a PDF with 50 more visuals like this one here: https://lnkd.in/eRpnR8Zu

  • 🚩 Red Flags in Financial Statements 🚩 Watch out for these signals: • Declining Profit Margins • Creative Accounting Practices • Excessive Debt Levels • Inconsistent Cash Flow • Frequent Changes in Auditors • Overstated Revenue or Assets • Integrity Concerns • Unusual Inventory Levels • Declining Market Share • Unexplained Changes in Accounting Policies Source: Vivek Sharma 📚 Grab the pdf here: https://lnkd.in/ghUbjvtP

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