When you look at the asset side of company’s balance sheet, you will find a category at the end of the balance sheet called current asset. It will let you know the liquid capital the company has to pay its current liabilities. This means, it will tell you how much money is available with the company for business immediately.Under current assets, you will find those assets … [Read more...] about Current asset on the balance sheet
Finance
Understanding the Cash Flow Statement: A Beginner’s Guide to Company Liquidity
When you’re looking into a company’s financial health, one of the most important documents to check is the cash flow statement. It gives you a clear picture of how cash moves in and out of the company, helping to assess whether the company can pay its bills, invest in growth, and survive financially.In this article, we will break down the concept of a cash flow statement in … [Read more...] about Understanding the Cash Flow Statement: A Beginner’s Guide to Company Liquidity
Financial tools to help you assess company’s liquidity position
Liquidity position of a company will tell you whether the organization has staying power in tough times. Analyzing company's liquidity position involves examining the relationship of current assets and current liabilities and in short run, how well a company can manage and fulfill its short-term obligations.In absence of adequate cash flow to the business, company may go … [Read more...] about Financial tools to help you assess company’s liquidity position
Difference between Intrinsic value and Current market value
As a investor, before investing in a publicly traded company, you should know when a stock is over or undervalued. To find it out, the first thing you should know is the intrinsic value of a stock and then compare it with the current market price.In this article, we will be discussing the difference between intrinsic value and current market value of a publicly traded … [Read more...] about Difference between Intrinsic value and Current market value
What is special purpose vehicle or entity – SPV/SPE
Special purpose vehicle or SPV is a project company that consists of consortium of shareholders specifically created to build and operate projects. It's also known as special purpose entity/corporation or project company.Special Purpose Vehicle can be formed either as a single legal entity or a joint venture consortium. The main motto for creating a SPV can be to purchase, … [Read more...] about What is special purpose vehicle or entity – SPV/SPE