Finance

Banks in India are mandated to mark their investments to prevailing market prices and charge the gains or losses to the profit and loss account, also known as mark to market gains or losses. You will also find mark to market concepts in future contracts. In this article, you will learn what is Mark to Market losses and Gains and how its used.Mark to market losses or … [Read more...] about What is Mark To Market Losses and gains

One of the most essential components of Warren Buffett's investing strategy is what he calls economic moats. It means a company’s competitive advantage that allows it to earn outsized profit for a long term.In this article, we will understand what economic moat is and how it helps a company to have a competitive advantage over its competitors.There are companies that … [Read more...] about Understanding economic moats in stock investing

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

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

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