Finance guides for beginners
Learn one concept, follow a worked example, then try the linked calculator. These guides introduce the methods and explain where a simple calculation stops being enough.
Profit vs cash flow: why a profitable business can run out of cash
Follow a fictional café from sales to profit and closing cash. Learn how payment timing, equipment and borrowing affect a cash forecast.
Explore →Working capital explained: inventory, receivables and payables
Learn operating working capital through an original retailer example, including why growth can absorb cash and how to test payment timing.
Explore →How to test valuation assumptions: a practical beginner checklist
Use a fictional valuation to explore growth, margins, debt and downside scenarios, with a checklist linking enterprise value to equity value.
Explore →EV/EBITDA explained: formula, example and limitations
Learn how EV/EBITDA works, calculate a fictional valuation multiple and understand why debt, cash flow and comparable companies matter.
Explore →M&A for beginners: how an acquisition works
Understand mergers and acquisitions through an original HC Labs deal example, from strategic rationale and valuation to diligence and integration.
Explore →DCF explained: discounted cash flow for beginners
Learn discounted cash flow with a worked HC Labs example, the distinction between enterprise and equity value, and a checklist for forecast assumptions.
Explore →What is corporate development? Strategy, deals and integration
Explore corporate development through an HC Labs acquisition scenario: strategy, target screening, valuation, diligence, partnerships and integration.
Explore →Compound interest explained: formula and examples
Understand compound interest with a worked savings example, monthly contributions, and the difference between an assumption and a forecast.
Explore →What is EBITDA? Meaning, formula and a worked example
Learn what EBITDA measures, calculate it from net income, and understand why EBITDA is not cash flow or a substitute for profit.
Explore →Enterprise value vs equity value: the difference explained
Compare enterprise value and equity value with a clear bridge, a worked example and the right earnings measure for each valuation.
Explore →How to calculate profit margin: gross, operating and net
Calculate profit margin, distinguish gross and net profit, and avoid confusing margin with markup using original worked examples.
Explore →P/E ratio explained: formula, examples and limitations
Understand price-to-earnings ratios, calculate a worked example, and compare trailing and forward P/E without treating a low ratio as a buy signal.
Explore →Browse all seven calculators or continue with interactive lessons and quizzes.