Return on assets, popularly referred to as ROA, is a financial ratio that indicates profitability of a company in relation to its total assets for a period. Retrun on assets (ROA) shows how efficient the management is in generating profit by using the company's assets.In this article you will learn how to calculate return on assets (ROA) and how to interpret the ratio to … [Read more...] about Return on Assets (ROA): How to calculate and use in financial analysis
Finance
Why Net Profit and Cash Flows Are Different Bottom Lines
Many non-finance professionals think that a business earning a profit means its cash balance went up by the same amount. If you are one of them, then we suggest you read this article in which we have explained why a company's net profit and cash flow are two different bottom lines.A company can have higher profits while having a poor cash flow.A healthy cash flow does … [Read more...] about Why Net Profit and Cash Flows Are Different Bottom Lines
Understanding Volume Weighted Average Price (VWAP) for intraday trading
In technical analysis we have different indicators to measure the movement of price for trading. One of such indicators used along with price action is Volume Weighted Average Price (VWAP).Price action of a stock or any other financial security can be analysed by using candlestick charts and price patterns.VWAP can be used along with other indicators for intraday … [Read more...] about Understanding Volume Weighted Average Price (VWAP) for intraday trading
Common Day trading myths Versus Reality in stock market
Day trading means buying and selling of financial instruments such as stocks, forex, options, future contracts, commodities and other financial securities within a trading session. This means, if you are day trading, then all your positions must be closed before the end of each trading session.Day trading is also referred to as Intraday. The main objective of day trading is … [Read more...] about Common Day trading myths Versus Reality in stock market
How net profit margin is used to analyse companies profitability
Net profit margin is calculated to know how much net income or profit is generated by the company as a percentage of revenue for a period. It's part of profitability ratios used by financial analysts to analyse a company’s income statement.You can present net profit margin in decimal form instead of showing as a percentage of revenue.If a financial analyst wants to know … [Read more...] about How net profit margin is used to analyse companies profitability