Posts Tagged: financial ratios

Finance

DuPont Analysis: A Simplified Guide

Originating from the DuPont Corporation in the 1920s, DuPont Analysis is a powerful tool that provides deep insights into a company's financial condition. It helps analysts break down a company's Return on Equity (ROE) into its essential parts. This breakdown is super handy because it lets you thoroughly assess a company's strengths and weaknesses.

Investor's Psychology

FCFE Vs FCFF: Understanding Free Cash Flow

The investing world is based on a quota of rules, regulations, and even speculations (Oh! We all love making our own theories about a stock's movement in the index, don’t we? 😉) But, all types of investors, traders, and analysts will agree that there are certain metrics and parameters to check while analysing a company.

Financial Ratios

5 Must-Check Financial Ratios For Company Analysis

In the realm of investing, every listed company, fund, security, and bond is subjected to rigorous financial scrutiny. From calculating profit margins to unearthing hidden debts, every aspect is meticulously examined to determine if it has the potential to be a wise investment.

Financial Ratios

Don't Overlook These Things Before Investing in a Company

Have you ever wondered if that stock you're eyeing is a real steal? Or if the company is a financial superhero or more of a financial zero? These questions often linger, but fear not, for I'm here to decode the mystery!

Financial Ratios

Decoding Income Statement

I remember this conversation with a friend (who happens to be a graphic designer). The guy had recently finished reading the book “The Psychology of Money by Morgan Housel”. He was super pumped about his DIY investing journey. On asking what company he got into, he reveals his first ever stock purchase was V-mart Retail Ltd. I further asked him about his rationale and why he chose the particular company. He tells me he has a store nearby his house and that he sees decent footfall; the company sells high-margin products compared to its peers and has a history of growing revenues. Not to take a dig at my very real and non-imaginary friend here, but this talk about growing revenues got me thinking…

Invest

High ROE Stocks in India

As investors with a long-term investment horizon, it becomes crucial to understand company fundamentals. Doing so ensures a good return when it comes to your investment. There tend to be many parameters one may use to assess the firm. One key measure is called return on equity, or simply ROE. It is always favourable from an investor’s point of view to choose stocks that provide them with a high ROE.

Invest

Trendlyne Review: The complete researched analysis

Till now, you ordered your cosmetics from Nykaa and were pretty satisfied with every delivery you received. But, as soon Nykaa got listed, you heard about the listing gains. It became the talk of the town. It is not every day that a brand you are so personally attached to, gets listed with a premium of 79%. And that is the day you decided to step into the world of the share market. But how would little old you, unaware of the dark secrets of this world, know where to begin. You start with learning stock market concepts, and in a few days, you feel like you’re ready to start the fundamental and technical analysis of stocks. But you need a screener to begin the process.

Financial Ratios

What is Cash Ratio?

People who are involved in the finance and stock market industry often get to hear about Cash Ratio. However, quite often, people tend to get confused about what exactly the Cash Ratio is all about.

Financial Ratios

Current Ratio : An important Liquidity Ratio

One of the most common reasons why liquidity is important for a business is to make payments and to meet current and/or regular cash needs.

Invest

What is Expense Ratio in Mutual Funds?

The saying of nothing comes free of cost fits perfectly on the scenario around mutual funds. Every company charges its client in exchange for the products or services it provides, and the route of expense ratio works in the very same way.

Stock Market

Master Class 12: Understanding Quick Ratio & Interest Coverage Ratio

Identification of companies with good investment opportunities is something that every investor should know how to do. Similarly, it is equally important to identify companies that do not have good stocks, companies that might be on the verge of bankruptcy, or companies that are unable to bear their own financial burden. The stocks of such companies are doomed to fail, and thus, investment here can prove to be a very bad decision and can lead to the loss of the investor's valuable money.

Stock Market

Master Class 11: Price to Growth (PEG) Ratio

One of the most important steps in evaluating a company's financial health and position is its valuation. Basically, the valuation of anything is an estimation of its worth.

Stock Market

Master Class 10: Return on Capital Employed and Return on Equity - ROCE Vs ROE

Staring at the financial statement for hours will not help you pick the best stocks. In fact, it is like looking at a 1000 page literature book without making an attempt to understand it. You need to start reading it in both cases. Just like alphabets, ratios aid you in your process of understanding financial health, risk, growth, and various other important metrics pertaining to the company. So if you are keen on picking up the right stocks, then the usage of ratio analysis becomes pivotal.

Stock Market

Master Class 5: Asset Turnover, Cash Cycle Ratio and Share Split

Have you seen the applications of your peers? Sometimes the achievements, degrees, and skills exceed their age. We try and hone our skills in every way possible. Similarly, to add more feathers to your cap of stock market analysis techniques, let us take you through another two important ratios:

Stock Market

Master Class 4: Understanding Return on Equity and Net Profit Margin

Any experienced investor knows that no investment decision can be taken by considering just one or two financial figures. In most cases, the analysis of multiple figures is required to get a clear picture of a company's financial health and performance. The company's financial statements are made public so that any potential investor can make their own analysis based on their evaluation of the data. Hence, to get a full and thorough look at any company's performance and to make an investment decision, one must understand how to evaluate the various financial figures that a company displays.

Financial Ratios

What is Return on Capital Employed (ROCE)?

Companies ensure that they provide better returns to their investors with the addition of leverage in their total capital, and thus show higher profitability and returns. We also previously understood evaluating a company's profitability and rate of returns to its investors with the use of Return on Assets (ROA) and Return on Equity (ROE) ratios.

Brokerage Review

ICICI Securities Review

When you invest in the stock market, you expect good returns from it. Hence, It is crucial to deal with the right broker.

Financial Ratios

Understanding Financial and Operational Leverages

When a company wants to increase its investments in order to expand its asset base and generate returns towards risk capital, it sometimes borrows capital as a funding source. This is known as Leverage. Leverage is an investment strategy of using borrowed money, specifically from financial instruments or borrowed capital, to increase its potential rate of returns on equity. Leverage also refers to the amount a company borrows or the debt it uses to purchase or finance assets.

Posts Tagged: financial ratios

DuPont Analysis: A Simplified Guide

FCFE Vs FCFF: Understanding Free Cash Flow

5 Must-Check Financial Ratios For Company Analysis

Don't Overlook These Things Before Investing in a Company

Decoding Income Statement

High ROE Stocks in India

Trendlyne Review: The complete researched analysis

What is Cash Ratio?

Current Ratio : An important Liquidity Ratio

What is Expense Ratio in Mutual Funds?

Master Class 12: Understanding Quick Ratio & Interest Coverage Ratio

Master Class 11: Price to Growth (PEG) Ratio

Master Class 10: Return on Capital Employed and Return on Equity - ROCE Vs ROE

Master Class 5: Asset Turnover, Cash Cycle Ratio and Share Split

Master Class 4: Understanding Return on Equity and Net Profit Margin

What is Return on Capital Employed (ROCE)?

ICICI Securities Review

Understanding Financial and Operational Leverages

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