Figyan

CA Bigyan Kumar Mishra

is a fellow member of the Institute of Chartered Accountants of India.He writes about personal finance, income tax, goods and services tax (GST), stock market, company law and other topics on finance. Follow him on linkedin or facebook or instagram or twitter.

Working capital turnover ratio: How to calculate and what it tells you

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We have many financial ratios to assess a company's efficiency in managing assets, liabilities and revenues in order to make profit. Working capital turnover ratio is one of such financial ratios.Working capital turnover ratio is calculated by using the following formula;Working capital turnover ratio = Net Annual Turnover or sales / average working capitalNet … [Read more...] about Working capital turnover ratio: How to calculate and what it tells you

Why cash flow is more important than a company’s net profit

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Company’s ability to generate positive cash flow is more important than profitability, because cash is needed to pay suppliers, employees and to take care of other expenses to continue as a going concern.A company that generates positive cash flow from its operating activities is at a better position than a company without positive cash flow. The company with positive cash … [Read more...] about Why cash flow is more important than a company’s net profit

Long & Short build-up, Long Unwinding and short covering – Explained

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If you are in stock market for a while, and closely following financial news sites, then you might have come across list of stocks listed on these websites with following types of heading;Have you ever wondered why these financial sites give you this type of information? Well, now you will know why.In this article, we will explain what is long and short build-up, and … [Read more...] about Long & Short build-up, Long Unwinding and short covering – Explained

Inventory turnover ratio: How to calculate and what it tells you

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Inventory turnover is a financial ratio which indicates the resource tied up in inventory, therefore it measures how effectively the company manages its inventory.We have two ways to calculate inventory turnover ratio. One using the cost of goods sold (COGS) and the other using sales in numerator. Few analysts believe that COGS should be used in place of sales as the latter … [Read more...] about Inventory turnover ratio: How to calculate and what it tells you

Is there a Holy Grail in trading

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You must have seen advertisements on social media platforms in which advertisers try to persuade the target audience to teach some kind of Holy Grail trading strategy to double the money overnight in the stock market, especially in the futures and options market.Beginners and novice traders after watching this type of claim might be thinking "WOW, they will teach us some … [Read more...] about Is there a Holy Grail in trading