The financial stability and growth of a business are the determining factors for the future prospects of a business, such as whether or not investors will provide funding, expansion plans, etc. This requires assessing the financial health report of the business in a quantitative form which is vital to know about the company in detail. […]
Ratio Analysis: The Right Way to Evaluate Business Financials 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 »
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 core goal of investing money is to generate value, whether in stocks or other financial assets such as bonds. In investing, two things are imperative: i) return on investment and ii) risk involved. One can not exist without the other; if you invest in the equity market, you are prone to market fluctuations daily,
All you need to know about Capital Asset Pricing Model (CAPM) Read More »
Be it budding start-ups or established businesses offering services globally, every organization is susceptible to encountering unanticipated cash flow that forces the owners to trade assets and fund unavoidable expenditures. Inevitably, business revenue can be highly fluctuating, and occasional calamities might occur. Hence, a business chief or potential financial investor needs to have in-depth financial
What is Quick Ratio? Calculation and Examples Read More »