Finance

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

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

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

PAT stands for Profit After Tax.One of the main objectives of a company is to increase shareholders wealth. It will increase only when the company earns money from its business. More money means more wealth.Due to this reason a company prepares periodical income statement to present before the shareholders. Income statement shows how efficiently the management has … [Read more...] about What is profit after tax (PAT) and how is it calculated

Key financial metrics can be helpful while finding long term investing opportunities in the stock market. One of the main objectives of a value investor is to pick a stock that they believe is undervalued. They use different financial metrics to analyse a company's fundamentals and valuation.One of the most well-known value investors Mr Warren Buffett uses fundamental … [Read more...] about 10 key financial metrics used by value investors to pick stocks