Finelo Blog

Learn investing and trading, one article at a time. Practical guides, beginner-friendly explainers, and learning tips from the Finelo team.

What is the Dividend Coverage Ratio and Why Does It Matter? — Finelo Blog
Investing

What is the Dividend Coverage Ratio and Why Does It Matter?

The dividend coverage ratio measures how many times a company could pay its dividend out of its earnings. You calculate it by dividing net income by the total dividends paid. A ratio of 2 means the company earns twice…

Finelo Team
What is the Asset Turnover Ratio and Why It Matters — Finelo Blog
Investing

What is the Asset Turnover Ratio and Why It Matters

The asset turnover ratio measures how much revenue a company generates for every dollar of assets it owns. You calculate it by dividing total sales by average total assets for the period. A ratio of 2 means each dollar…

Finelo Team
What is Stock Lending? How It Works, Benefits, and Risks — Finelo Blog
Trading

What is Stock Lending? How It Works, Benefits, and Risks

Stock lending is the practice of temporarily loaning shares you own to another party, usually a short seller via your broker, in exchange for a fee. You keep economic exposure to the stock and can typically sell at any…

Finelo Team
What is Slippage Trading and How Can You Manage It? — Finelo Blog
Trading

What is Slippage Trading and How Can You Manage It?

Slippage in trading is the difference between the price you expected when you placed an order and the price at which the order actually executed. It happens because markets move in the instant between your click and…

Finelo Team
What is Schedule 13D and Why is it Important? — Finelo Blog
Investing

What is Schedule 13D and Why is it Important?

Schedule 13D is a disclosure form filed with the U.S. Securities and Exchange Commission when an investor acquires beneficial ownership of more than 5% of a company's voting shares with intent to influence control. Per…

Finelo Team
What is Return on Equity (ROE) and Why It Matters — Finelo Blog
Investing

What is Return on Equity (ROE) and Why It Matters

Return on equity (ROE) measures how much profit a company generates for every dollar shareholders have invested in it. You calculate it by dividing net income by average shareholders' equity, expressed as a percentage…

Finelo Team
What is Return on Capital Employed (ROCE)? — Finelo Blog
Investing

What is Return on Capital Employed (ROCE)?

Return on capital employed, or ROCE, is a profitability ratio that shows how efficiently a company turns the total capital it uses into operating profit. You calculate it by dividing operating profit (EBIT) by capital…

Finelo Team
What is Portfolio Turnover and Why Does It Matter? — Finelo Blog
Trading

What is Portfolio Turnover and Why Does It Matter?

Portfolio turnover measures how often the holdings inside a fund or portfolio are bought and sold during a year. A turnover ratio of 100% means the fund replaced the equivalent of its entire portfolio within twelve…

Finelo Team
What is Portfolio Beta and Why Does It Matter? — Finelo Blog
Investing

What is Portfolio Beta and Why Does It Matter?

Portfolio beta measures how sensitive your whole portfolio is to movements in the broad market. A beta of 1 means the portfolio tends to move in line with the market. A beta of 1.3 suggests it moves about 30% more than…

Finelo Team
What is Institutional Ownership and Why Does it Matter? — Finelo Blog
Investing

What is Institutional Ownership and Why Does it Matter?

Institutional ownership is the percentage of a company's shares held by large organizations rather than individual investors. These organizations include mutual funds, pension funds, insurance companies, hedge funds…

Finelo Team
What is Free Cash Flow Yield and Why It Matters — Finelo Blog
Investing

What is Free Cash Flow Yield and Why It Matters

Free cash flow yield measures how much spendable cash a company generates each year relative to what the market charges you to own it. You calculate it by dividing free cash flow per share by the share price, or total…

Finelo Team
What is Earnings Yield and How Can It Impact Your Investments? — Finelo Blog
Trading

What is Earnings Yield and How Can It Impact Your Investments?

Earnings yield tells you how much a company earns per year for every dollar you pay for its stock, expressed as a percentage. You calculate it by dividing earnings per share by the share price. A stock earning $5 per…

Finelo Team

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