Finance

Financial statement analysis is used by analysts to evaluate an investment in some kind of security such as equity or debt. In order to arrive at a decision or recommendation, analysts are required to evaluate the financial performance, position and true value of the company from its financial statements.The role of these financial analysts is to take the published … [Read more...] about Financial statement analysis: The basics for non-accountants

A publicly traded company has to compulsorily publish its income statement in addition to other financial statements for a quarter or year to the public. These statements are to be filed with the government and stock exchanges as per the rules and regulations of the country.Income statement is also known as profit and loss account. It depicts the total revenues, cost of … [Read more...] about Why and How to analyse company’s income statement

Fundamental analysis helps investors determine the intrinsic value of a security by evaluating a company's financial health, performance metrics, and growth potential, enabling informed investment decisions.By focusing on underlying economic and financial factors, fundamental analysis encourages a long-term investment strategy rather than short-term speculation.But, … [Read more...] about Why Fundamental Analysis Isn’t Enough: Ten Key Limitations

We follow two methods for analysing a stock in order to find out a potential investment opportunity;Market participants are always debating which is better.Fundamental analysis focuses on a company's fundamental information about the strength, quality, soundness of the company and its products. The technical analysis is used to know how a stock is performing in the … [Read more...] about Technical Analysis vs Fundamental Analysis – what is the difference?

Imagine you are looking at two companies before investing your money. Both show big sales numbers, both look successful — but which one is actually stronger? This is where financial ratios help.Financial ratios turn large financial statement numbers into simple comparisons that help you understand how a business is really performing. For beginners in India learning stock … [Read more...] about How to Measure a Company’s Performance: A Simple Guide for Beginners