External Causes of Organization Decline
Many theorists believe that organizational decay is caused by external factors. In fact, some have gone far enough to suggest the various stages in which this decline happens. However, the exact external causes are often difficult to understand. In this article, we will have a look at some of the most prominent causes of organizational […]
Interest Rates and Their Effect on Small Businesses
Predicting future interest rate movements is not only important for traders who invest in financial markets. Instead, it is also important for regular business people. It is important for small businesses because the increase and decrease in demand is related to interest rates which the central bank sets. The problem is that most central banks […]
Pension Fund Governance Structure and its Need
Since pension funds manage assets worth billions or even trillions of dollars. This means that it is crucial to create a structure that manages the pension fund itself. Since the pension fund industry is highly regulated, it is important for the fund to have a structure in place which allows for quick and effective decision-making. […]
Financial Intermediaries – Meaning, Role and Its Importance
Introduction A financial intermediary is a firm or an institution that acts an intermediary between a provider of service and the consumer. It is the institution or individual that is in between two or more parties in a financial context. In theoretical terms, a financial intermediary channels savings into investments. Financial intermediaries exist for profit […]
Lessons Learned in Behavioural Finance
In the past few articles, we have studied about how behavioral finance impacts financial markets more than one might believe. When the subject of behavioral finance was first created, it was thought of as being an unimportant subject. It was perceived as being a cross between financial theory and psychology. However, over the years, behavioral […]
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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