What is Quick ratio & Reasons for its Usage
Invest

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 5 years ago
Does your company have enough Liquidity?
Invest

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 5 years ago
What is the Fixed Asset Turnover (FAT) Ratio?
Invest

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 5 years ago
Why is it important to understand your investments?
Invest

Why is it important to understand your investments?

“Caveat Emptor” or “Buyers Beware” is the central theme that runs across the world of investing.  Every investor should have truckloads of knowledge about the investing world and where they are investing in. In this Monetary world, people want quick money.. easy money.. fast money.. And for this, they often resort to fraudulent activities, embezzlement, treachery, etc.

Continue Reading about 5 years ago
5 components of Balance Sheet that influences Investment Decisions
Invest

5 components of Balance Sheet that influences Investment Decisions

How do you go about investing in stocks? Obviously, the first thing to do would be industry analysis - growth prospects, competitive analysis, barriers to entry, etc. But, as we had quoted Warren Buffet in a previous article, “there is a lot more to picking stocks than to work out which is going to be the most wonderful industry in the future.”

Continue Reading about 5 years ago
Difference between market value and book value
Invest

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 5 years ago
What is Debt to Equity Ratio?
Invest

What is Debt to Equity Ratio?

It is imperative and a task of paramount importance for an investor to examine the financial performance of a company from every angle before investing a single penny in that company. The true worth of the company can be detected by analyzing its financial ratios.

Continue Reading about 5 years ago
What is Margin of Safety?
Invest

What is Margin of Safety?

Origin of ‘Margin of Safety’

Continue Reading about 5 years ago
Efficiency Ratios Analysis
Invest

Efficiency Ratios Analysis

As an investor, you need to determine how productively your company is managing its assets and liabilities to maximize profits.Revenue turnover, profits or assets; all these figures may tell you, how big an enterprice is . However, these figures cannot give you an idea whether the business is efficient or not.

Continue Reading about 6 years ago