what is the Impact of Demerger on Shareholders?
Investing

what is the Impact of Demerger on Shareholders?

There are often times when a diversified company opts for focusing on its core businesses and transferring its other business operations to a different company. This is the simple idea behind a popular corporate restructuring activity i.e., Demerger.

Continue Reading about 9 days ago
What should an investor look for in quarterly reports?
Investing

What should an investor look for in quarterly reports?

As a shareholder, do you forget holding the shares of a particular company, or are you anxious to know what is happening with the company whose shares you are holding? Well, if you belong to the second category, quarterly results are your savior.

Continue Reading about 14 days ago
How Important is ROE for Investors?
Investing

How Important is ROE for Investors?

Forget head-and-shoulders, bear traps double bottoms, forget volume, and forget stochastics. When you’re looking at a company, the single-most-important number is return-on-equity. Return on Equity is how much profit a Company generates when compared to shareholder equity. What makes ROE so good as a tool to analyze a Company is because it doesn’t account for the price of the stock. It only measures the company’s performance not the stock’s performance.

Continue Reading about 24 days ago
How ROA and ROE help in analysing corporate health?
Investing

How ROA and ROE help in analysing corporate health?

It’s a no brainer for an investor to look into the financial ratios before making investment decisions, as there are no single measures to tell the whole story, making informed investment decisions could be tricky and may rattle your grey cells.

Continue Reading about 1 months ago
What is Discounted Cash Flow?
Investing

What is Discounted Cash Flow?

Imagine the scenario where you decide to invest a specific portion of your pocket money say Rs1000 into stocks. Well, how would you select the appropriate stock? Will you blindly follow the advice given by your friends and family, or would you, as an intelligent investor, do a cost-benefit analysis?

Continue Reading about 1 months ago
How does Zomato earn Money?
Entrepreneurship

How does Zomato earn Money?

Are you a foodie? If yes, I’m sure Zomato crosses your mind and pops up on your phone with delicious offers for ‘n’ number of times. I’m also certain that you would’ve wondered how does Zomato make money even after providing such tempting discounts. Isn’t it?

Continue Reading about 1 months ago
What is Interest Coverage Ratio(ICR) and its Importance
Investing

What is Interest Coverage Ratio(ICR) and its Importance

A layman can end up losing his hard earned money if he doesn’t take his investment decision wisely and picks a stock randomly just by looking at its numbers flashing on the real time stock screen.

Continue Reading about 2 months ago
Why is Price to Earnings (P/E) Ratio important for Company Analysis?
Investing

Why is Price to Earnings (P/E) Ratio important for Company Analysis?

For any investor, analyzing a company thoroughly is as important as knowing his risk appetite. Price to Earnings ratio of a stock forms an integral part of its valuation matrix and varies across sectors and companies.

Continue Reading about 2 months ago
What is Quick ratio & Reasons for its Usage
Investing

What is Quick ratio & Reasons for its Usage

An invetsor who tends to buy stocks should evaluate the financial statements of the company with great seriousness.

Continue Reading about 2 months ago
Why is analysing Cash Flow Statements Important?
Investing

Why is analysing Cash Flow Statements Important?

Cash flow statement is an important financial statement that analyses and summarises the amount of cash and cash equivalents that enter and leave the company. It measures how effectively a company is utilising its cash balances that is, how well it manages its operating expenses and how well it generates cash to pay its debts.

Continue Reading about 2 months ago
Everything about promoter pledging that you should know
Investing

Everything about promoter pledging that you should know

The Reserve Bank of India (RBI) in its Financial Stability Report dated June 27, 2019, expressed its concern over the high level of promoter pledging. The report argued that a high level of promoter pledging indicates the poor financial health of a company and probably a situation that a company is unable to raise funding from other sources.

Continue Reading about 2 months ago
Does your company have enough Liquidity?
Investing

Does your company have enough Liquidity?

Your company’s revenue figures are great to flaunt, but they don’t ultimately mean much if your cash flow is out of whack. Profit offers peace of mind, surely, but it doesn’t indicate that your business financials are sound. Only stable, reliable cash flows can truly demonstrate success. 

Continue Reading about 2 months ago
What is the Fixed Asset Turnover (FAT) Ratio?
Investing

What is the Fixed Asset Turnover (FAT) Ratio?

A fixed asset turnover ratio is an efficiency ratio that shows the return received by a company on the investments made by them in fixed assets such as plant, machinery, equipment, etc., in relation to the total sales generated. In other words, it measures how efficiently a company uses its fixed assets to make sales. Creditors and investors refer to this ratio to identify the efficiency of the company in managing its fixed assets. They do so to interpret the returns they might earn on their investments made in the company and make sure that the earnings/revenues from the equipment are enough so that the company can pay back the loans that it has taken for it. The formula for calculating the fixed asset turnover ratio 

Continue Reading about 2 months ago
What is Enterprise Value? Why is it important to an investor?
Investing

What is Enterprise Value? Why is it important to an investor?

What is Enterprise Value? Enterprise Value (EV) is simply the total price that you need to pay to acquire 100% of any company. EV is also known as the Total Enterprise Value (EV) or Firm Value (FV). 

Continue Reading about 2 months ago
5 components of Balance Sheet that influences Investment Decisions
Investing

5 components of Balance Sheet that influences Investment Decisions

People in current markets are inclined towards making profits and increasing their earnings. They want to invest in sectors and companies that are at their booming phase and would probably provide them with the highest returns. But how are their investment decisions made by their individuals? On what grounds do they decide whether they should invest in one particular company or another? These decisions are made by referring to the financial statements of the company and studying their growth pattern over the years. Financial statements such as Balance Sheet, Profit, and Loss accounts, Cash Flow Statements, etc. reflect the position of the company in terms of profitability and liquidity. It tells us where the company has made its investments and how much reserves it has created by now and how much money does it need to run its business on a daily basis and the kind of liquidity it has.

Continue Reading about 2 months ago
What are Moats and Floats?
Investing

What are Moats and Floats?

A very successful and consistent investor of Wall Street, Mr. Warren Buffet, who is the founder and CEO of Berkshire Hathaway, coined the term MOAT.

Continue Reading about 3 months ago
Difference between market value and book value
Investing

Difference between market value and book value

All of these terms are used for the financial market and signify a particular meaning to the financial instruments. These terms have a different value for every financial instrument and should be taken into consideration. So let us know about every term in detail:

Continue Reading about 3 months ago
What is Beta in Finance?
Investing

What is Beta in Finance?

A beta coefficient is a measure of the volatility, or systematic risk, of an individual stock in comparison to the unsystematic risk of the entire market. In other words, beta helps us understand how stock returns react to market fluctuations. The more it gets changed/ affected/ fluctuated, the higher will be the beta and vice versa. Basically beta helps the investors determine how risky the stock is w.r.t the market movements.

Continue Reading about 3 months ago