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
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
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
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
Fiscal Policy: What is the purpose and its effect
A country’s fiscal policy along with the monetary policy plays a crucial role in managing the growth in the economy. The main purpose of both fiscal and monetary policy is to achieve full employment, maintain or achieve high economic growth and to stabilise the price and wages.Fiscal policy refers to the use of the Government spending and tax policies to influence the … [Read more...] about Fiscal Policy: What is the purpose and its effect