One financial term or ratio at a time — P/E, ROCE, P/B, and the rest, explained with a worked example.

35 posts published so far, in reading order.

  1. Meet Desi Bites Foods: the company we'll use to decode every ratio 18 Aug 2026
  2. Reading a Balance Sheet, using a snacks company 20 Aug 2026
  3. Reading an Income Statement (P&L), using a snacks company 22 Aug 2026
  4. Reading a Cash Flow Statement, using a snacks company 24 Aug 2026
  5. Gross Margin: how much survives the cost of making the thing 26 Aug 2026
  6. EBITDA margin: formula, meaning and what it hides 28 Aug 2026
  7. Net Margin: what actually makes it to the bottom line 30 Aug 2026
  8. ROE (return on equity): formula, meaning and an example 1 Sep 2026
  9. ROCE explained: return on capital employed, with formula 3 Sep 2026
  10. ROA (Return on Assets): how hard everything the company owns is working 5 Sep 2026
  11. Inventory Days: how long stock sits on the shelf before it sells 7 Sep 2026
  12. Debtor Days: how long customers take to actually pay 8 Sep 2026
  13. Creditor Days: how long a company takes to pay its own suppliers 9 Sep 2026
  14. Cash Conversion Cycle: how long cash is actually stuck in the business 10 Sep 2026
  15. Asset Turnover: how much revenue a company squeezes out of what it owns 11 Sep 2026
  16. Net Working Capital: the cushion for day-to-day operations 12 Sep 2026
  17. Current Ratio: can short-term assets cover short-term bills 13 Sep 2026
  18. Quick Ratio: coverage without counting on inventory 14 Sep 2026
  19. Debt-to-equity ratio: formula, meaning and examples 15 Sep 2026
  20. Equity Multiplier: how many times equity is levered up into total assets 16 Sep 2026
  21. Interest Coverage: can operating profit comfortably pay the interest bill 17 Sep 2026
  22. Net Debt/EBITDA: how many years of profit it would take to pay off the debt 18 Sep 2026
  23. Free cash flow (FCF): formula and how to calculate it 19 Sep 2026
  24. OCF/PAT: how much of reported profit actually shows up as cash 20 Sep 2026
  25. Capex Intensity: how capital-hungry the business actually is 21 Sep 2026
  26. Book Value per Share: what each share is worth on paper 22 Sep 2026
  27. EPS: profit sliced into one share's worth 23 Sep 2026
  28. P/E ratio explained: formula, meaning and common mistakes 24 Sep 2026
  29. P/B ratio explained: price-to-book formula and example 25 Sep 2026
  30. EV/EBITDA explained: formula, meaning and an example 26 Sep 2026
  31. Market cap: what it means and how it's calculated 27 Sep 2026
  32. Dividend yield: formula, meaning and what it can't tell you 28 Sep 2026
  33. PEG: is the P/E actually justified by how fast the company is growing 29 Sep 2026
  34. Beta: how much a stock moves when the market moves 2 Oct 2026
  35. Alpha: the return that's left after the market is accounted for 3 Oct 2026

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