Financial Analysis
Inventory Turnover Ratio: A Complete Guide
Inventory turnover ratio is a measure of the efficiency of inventory management by a company. It tells us whether the company is using its inventory in the best possible manner or not. Inventory management is one of the most essential functions of the company. It
Receivable Days: A Complete Guide
Receivable days represent the number of days customers are taking to pay a company for its sales. We calculate receivable days using the following formula: = 365 / (Sales / average of trade receivables outstanding at the start of the year and at the end
Asset Turnover Ratio: A Complete Guide for Investors
Asset turnover ratio represents the efficiency with which a company is able to use investments in its assets. It is defined as a ratio of sales and assets. Effectively, an asset turnover ratio intimates an investor the amount of sales that a company can generate
When a company should sell all assets and invest money in FDs?
The current article in this series provides responses related to the following queries: When a company is better off by selling all its assets and invest the money in Bank’s fixed deposits? Applicability of (net PAT/total assets vs FD) to banking/financial institutions/service sector companies Use
Fund Flow Statement Analysis: The Ultimate Guide
Fund flow statement analysis is one of the simplest and most basic tools for stock analysis. Fund flow statement analysis helps investors identify the key areas of utilization of funds for a company during any period along with the key sources of those funds. Fund
Free Cash Flow: A Complete Guide to Understanding FCF
The current article explains the concept of Free Cash Flow (FCF), its importance in investment decision-making along with illustrative examples of companies with a positive free cash flow and with a negative cash flow. The article also includes responses to the queries asked by readers
Can we Predict Future Performance of a Company?
The current article in this series provides responses related to the following queries: De we use future projections in our analysis? How do we know if a company will continue to grow Can we predict the future market cap of a company? Can we estimate
Negative Working Capital Companies: How to Analyse
The current article provides our response related to a query asked by one of the readers about the interpretation of companies with negative working capital. How to interpret companies with negative working capital? Hi Dr. Vijay Negative working capital is usually considered not favourable as
Operating Performance Analysis: A Simple & Complete Guide
Analyzing the operating performance of any company is a critical step before taking any investment-related decision about any company. It tells an investor whether any company is improving its operating efficiency year on year and should be a potential investment candidate or on the contrary,
How to do Financial Analysis of a Company
The financial analysis aims to analyze the amount of income it earns in sales, amount of profits it is able to retain for shareholders after factoring in all expenses & taxes and the growth in sales & profits over past. The financial analysis also focuses
- Buy/sell recommendations for selected stocks with a crisp investment rationale
- We have selected these stocks after an in-depth financial, business, valuation, and management analysis
“Peaceful Investing” is the result of my experience of more than 15 years in stock markets. It aims to find such stocks, where after investing, an investor may sleep peacefully. If later on, the stock prices increase, then the investor is happy as she is now wealthier. If the stock prices decline, even then the investor is happy as she can now buy more quantity of the selected fundamentally good stocks.
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