Return on Capital Employed (ROCE): Definition, Calculation & How Investors Use It
Imagine you’re deciding between two lemonade stands to invest in. Stand A made $100 profit using $500 worth of equipment and…
Retention Ratio (Plowback Ratio): Definition, Formula & Investment Use
The retention ratio (also called the plowback ratio) shows what percentage of a company’s net income is retained for reinvestment instead…
Capital Allocation: Strategies, Benefits, and Risks
Capital Allocation is the process by which a company strategically distributes its financial resources to maximize long-term value. It balances growth…
Capital Gains Tax: Definition, Rates, and Smart Strategies for Investors
Imagine selling your first investment for a profit, exciting, right? But then tax season arrives, and you realize you owe Uncle…
