What’s the Difference Between ROI and ROIC?

While ROIC and ROI may seem like similar financial abbreviations on the surface, the main difference between each metric lies in the purposes for which they are being used. ROIC measures the return of a business based on its invested capital, usually on an annualized or trailing 12-month basis. ROI on the other hand purely […]

Free Cash Flow vs Net Income: What’s the Difference?

In finance, you will often hear about two measures that accountants, analysts, and investors refer to the most when they review a company’s financial health: Net income (also known as earnings, or net profits) and free cash flow (FCF). Both metrics are measures of profitabilty and financial performance. But what exactly seperates free cash flow […]

What’s Considered a Good Earnings per Share?

What Exactly Is EPS? EPS stands for earnings per share and is exactly what the name implies: The earnings or net income figure of a company split up on a per-share basis. To put it in another way, earnings per share measures the profit of a company for each share outstanding. In order to calculate […]