FMP

FMP

Education - financial-ratios

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Why Financial Ratios Break Down Across Market Cycles

Financial ratios are often treated as objective measures of business performance. Profitability, leverage, and valuation ratios appear precise, comparable, and reusable across time. In practice, their...

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The Cash Conversion Trap: When High Margins Hide Weak Cash Flow

Financial analysts frequently observe periods where headline profitability remains stable while underlying cash movement...

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The Competitive Moat Index: Using KPI Convergence and Divergence to Identify Future Winners

Every analyst talks about "moats," but few quantify them effectively. We often rely on qualitative descriptors like "net...

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Coverage Ratio Formula: A Practical Guide for Analysts

Understanding a company's solvency—its long-term ability to meet its financial obligations—is a cornerstone of sound fin...

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Price-to-Earnings Ratio: Calculation, Use Cases, and Pitfalls

If you pay $50 for a stock that earned $2 in profit last year, are you getting a good deal? Many junior analysts grapple...

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Debt to Total Assets Ratio: What It Tells You About Financial Stability

In recent years, the balance sheets of many high-growth companies have undergone a dramatic transformation.  For inst...

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Interest Coverage Ratio: How to Calculate and Interpret It

In fiscal 2024, U.S. corporations paid over $500 billion in interest expenses—a record high in modern history (source: F...

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What is EBITDA? Definition, Formula, and Why Analysts Use It

According to CFA Institute curriculum materials, EBITDA is among the most frequently used metrics in relative valuation,...

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Why ROIC and WACC Matter for Picking Winning Stocks and How to Get Those Values Using FMP and Google Sheets.

What is ROIC and WACC? Return on Invested Capital (ROIC) measures how efficiently a company uses its capital (equity ...

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NVDA vs AMD: Which Stock Is the Better Investment Based on Financial Ratios?

Are you trying to decide whether to invest in NVIDIA (NVDA) or AMD (Advanced Micro Devices)? Both companies are top play...

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Sector P/E Snapshot API: Analyze Market Sectors Like a Pro

What is the Sector P/E Snapshot API? The Sector P/E Snapshot API provides traders, investors, and developers with rea...

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Examining Tesla’s Financial Health Using FinancialModelingPrep’s Ratios API

Tesla, one of the world’s most talked-about electric vehicle manufacturers, attracts a lot of attention from investors a...

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How to Analyze a Company Using Financial Ratios and the Financial Modeling Prep API

Analyzing a company is essential whether you're an investor, a business owner, or just curious about how a business oper...

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A quick guide to financial ratio analysis, why you need them, how to read them and why you should not rely solely on the P/E ratio.

Financial ratio analysis provides a good picture of a company’s profile, its financial condition, and where it stands in...

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Benchmarking Companies Within an Industry: Key Ratio Considerations

Benchmarking Companies Within an Industry: Key Ratio Considerations Introduction Benchmarking is a critical financia...

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Essential Financial Metrics in Company Reports: A Comprehensive Guide for Investors

Conducting a thorough industry analysis is essential for businesses and investors looking to understand market dynamics ...

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Basic Financial Ratios: Essential Tools for Smart Investing

Basic Financial Ratios: Essential Tools for Smart Investing In the world of investing, understanding financial ratios...

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Portfolio Optimization Techniques: Advanced Methods Using Financial Data APIs

<h1>Portfolio Optimization Techniques: Advanced Methods Using Financial Data APIs</h1> In the ever-evolving world of ...

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Quantitative Investment Strategies: Backtesting, Performance Attribution, and Machine Learning Applications

Introduction Quantitative investment strategies have become increasingly sophisticated, leveraging data-driven appr...

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Data Cleaning for Financial Modeling | Accurate Analysis Techniques

The Importance of Data Cleaning in Financial Modeling Data cleaning is a crucial step in financial modeling, as it en...