Current Ratio – Formula, Meaning, Assumptions and Interpretations
February 12, 2025
Modern commodity exchanges are huge financial markets. Their daily transaction volumes run into billions of dollars to say the least. Many people find it strange that, businesses as rudimentary as mining and agriculture have resulted in the creation of markets which are as massive and as advanced as the commodities exchanges of today! Companies that […]
Definition of Financial Planning Financial Planning is the process of estimating the capital required and determining it’s competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise. Objectives of Financial Planning Financial Planning has got many objectives to look forward to: Determining capital requirements- […]
Commercial banks provide various types of services to their customers. One such area of service is that of liquidity management. Commercial banks offer several liquidity management arrangements to their clients. Notional pooling is one such arrangement that is very popular amongst corporations that have many subsidiaries. In this article, we will have a closer look […]
In the previous article, we have already seen what Black Friday sales or deeply discounted sales are. We also know the economic rationale behind such sales. Some of the benefits which are derived from these sales have also been discussed in the previous article. However, it would not be appropriate to say that deeply discounted […]
When a company is facing bankruptcy, it tries to free up as much capital as possible. This freed up capital is used to finance the operations of the firm. One way to free up the capital is to sell fixed assets of the firm. During the bankruptcy process, it is possible for a company to […]
Ratio analysis is one of the oldest methods of financial statements analysis. It was developed by banks and other lenders to help them chose amongst competing companies asking for their credit. Two sets of financial statements can be difficult to compare. The effect of time, of being in different industries and having different styles of conducting business can make it almost impossible to come up with a conclusion as to which company is a better investment. Ratio analysis helps creditors solve these issues. Here is how:
Here is where the investors get the data they require for ratio analysis:
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