As the name implies, a closed-ended mutual fund is one in which investors cannot enter or exit until the fund’s maturity date. Because these funds are listed on stock markets, investors can exit the fund before the maturity period as well. Alternatively, there are different types of mutual funds. We can classify mutual funds into […]
Is A Closed-End Fund Right for Your Portfolio? Read More »
Every business needs to monitor its revenue, expenditure, and profits to ascertain its financial health and success. Gross profit is an important parameter that shows how much revenue a company brings after the subtraction of expenses involved with that revenue. This value tells the company’s management and investors the profitability of a certain product or
Gross Profit: Meaning and Formula Read More »
Many interpret funds as mere cash, and a fund flow statement formulated out of this aspect is known as a cash flow statement, where only the outflow and inflow of cash flow get recorded. The cash flow statement omits numerous accounting items which do not directly impact cash or working capital. This is the reason
Fund Flow Statement: Definition, Features, and Importance Read More »
EBIT (Earnings Before Interest and Taxes) is a measure of a company’s profitability. It calculates a business’s operating profits by deducting operating expenses and the cost of goods sold from its net revenue. This calculation is relatively simple as it does not consider taxes or interest. Investors and creditors use this value to see how
EBIT: Meaning and Full Form Read More »
EPS (earnings per share) is an important unit of measurement for investors to gauge a company’s profitability. It indicates a company’s profitability against its peers on a per-share basis. One can calculate EPS on a quarterly or annual basis by dividing a company’s net income by its total number of outstanding shares. Now, let’s dive
Earnings Per Share (EPS) — Meaning and Formula Read More »
Cash and cash equivalents are essential metrics that form a huge portion of a company’s operating plan. Companies with higher cash and cash equivalents in the balance sheet can overcome the crisis more conveniently than those companies which are cash strapped. Read the following to know the cash and cash equivalents meaning and examples. What
Cash and Cash Equivalents: Definition and Components Read More »
Capital structure refers to a combination of debt and equity that a company utilises to purchase assets and finance overall operations. Organisations can fund their activities via equity financing, debt financing, vendor financing and preference share capital. The composition of debt and equity in the capital structure of a company represents its financial position and
Capital Structure: Meaning, Concept, and Importance Read More »
Capital budgeting refers to the process of evaluating potential risks and expected returns of a project. It helps businesses to establish a quantitative view of every proposed investment, which enables them to make rational decisions. Typically, such investments pertain to long-term assets that can potentially increase an organization’s profitability. Before knowing the different capital budgeting
Capital Budgeting: Process, Techniques, and Importance Read More »
The term ‘black swan event’ was first used by former Wallstreet trader, Nassim Nicholas Taleb in 2001. He, later, went on to write a complete book about this concept – The Black Swan: The Impact Of The Highly Improbable in the year 2008. Black swan events can cause catastrophic damage to an economy. Since they
Black Swan Events: A Guide to Unpredictable Catastrophic Events Read More »
Assets form a very important component of a business. If a person is planning to start a business soon or already has one up and running, they would look to acquire assets to conduct their daily operations and/or for further expansion. Maintaining financial stability by way of proper asset management increases their chances of success.
Assets: Definition, Types, and Examples Read More »