Capital, be it debt or equity, comes at a cost. It is, therefore, important to know if a company is generating enough returns to cover that cost. If the returns are higher than the cost, the company is adding value, else value is being lost. We use profitability ratios, such as return on assets, return...

The Board of Directors is a group of people elected by the stockholders (the owners) to represent their interest. The primary responsibility of the board of directors is to protect the shareholders’ assets and ensure they receive a decent return on their investment. The board is responsible for...

Dividend is a portion of the profits that a company pays to its share holders. Companies that earn a profit can do one of three things: pay that profit out to shareholders, reinvest it in the business through expansion, debt reduction or share repurchases, or both. When a portion of the profit is paid...

In this video, the tutor explains about investing in Mutual Funds. He explains about different types of mutual funds, charges associated with Mutual Funds investments, what to look at before investing in Mutual Funds etc.

In this video is meant esp. for youngsters who are freshly entering the stock markets and have high risk tolerance. The mentor says, the stock market is not a place for everyone and for people its better to stay in bank account and real estate etc. He talks about how to find great businesses, how to...

In this video, the tutor advices the beginners who are looking to invest or trade in stock markets what to do and what not to do - like he advises not to buy hot tips, penny stocks, partnership stocks etc and not to do day trading etc. This is esp. for the beginners and people with no experience. He...

Here is an excellent video for the beginners to learn the basics of investing or trading in the stock markets. Here the tutor explains about the very basics of Stock Market trading like opening an account, the trading charges and profit margins etc.

A critical analysis of cash flow statement is vital information for a company’s management team and for both prospective and current stockholders. By understanding the basics of cash flow management, company management are better equipped to make financial decisions regarding such issues as whether...

Source: financial-education.com Depreciation can be a component of both cost of sales (depreciation on manufacturing equipment) and selling, general, and administrative expenses (depreciation on sales offices). Depreciation is the allocation of the cost of assets that are expected to provide benefits...

P/E (Price to earnings Ratio) is one of the important statistic that we usually look at to measure how attractive the valuation of the stock currently is. This ratio indicates the A valuation of a company’s current share price compared to its per-share earnings. Hence it indicates how the company...