Unit 2

• Initial Public Offering (IPO) is the first sale of shares to the public.
• SWOT analysis is a tool used to analyze a business's internal and external strengths and weaknesses and opportunities and threats
• Gross profit margin= (gross profit / sales revenue) x 100
• Gross profit= revenue - cost of sales x 100
• Net profit Profit left after all expenses, including financing costs and taxes, have been deducted from the firm’s revenues
• Net profit margin (NPM)= Net profit / Revenue x 100
• Asset turnover= (Total revenue/ Total assets) x 100
• Return on assets (ROA)= net profit / total assets x 100
• Return on assets (ROA)= net profit / total assets x 100
• Return on assets (ROA)=NPM*Asset turnover
• Operating Cash Flow: The cash generated by the business's day-to-day operations.
• Free Cash Flow to Equity = FCF - Net Cash Flow from Operations
• Internal Rate of Return (IRR) - The rate of return on an investment project.