Intermediate

Test your understanding of short interest: how it is reported, how to read the percentages, what days-to-cover means, and the short squeeze dynamic.

Test your understanding of share dilution: where new shares come from, how SBC shows up in the income statement, what basic vs diluted EPS really means, and how buybacks offset new grants.

Test your understanding of short-term liquidity: working capital, the current ratio, the quick ratio, the cash ratio, the cash conversion cycle, and how to read the gap between net income and operating cash flow.

Test your understanding of DCF: the formula, WACC and the Capital Asset Pricing Model, terminal value methods, the bridge from enterprise value to per-share intrinsic value, and the common mistakes that make DCF models unreliable.

Test your understanding of ROIC: the NOPAT and invested-capital definitions, the ROIC vs WACC value-creation test, the DuPont decomposition, and how ROIC differs from ROE.

Test your understanding of WACC: the formula, the cost of equity via CAPM, the cost of debt and the tax shield, market values versus book values, and how WACC sets the threshold for value creation against ROIC.

Test your understanding of enterprise value: the EV formula, why cash is subtracted, how net debt bridges market cap and EV, the difference between P/E and EV/EBITDA, the common EV ratios, and how EV ties together the valuation reading series.