Finance

To find out how efficient the company is at paying to its creditors, suppliers or short term obligations, accounts payable turnover ratio is calculated.Accounts payable is a short term liability shown in the current liability section on the balance sheet. It shows how much a company owes to its suppliers and creditors as at the balance sheet date. It's also known as average … [Read more...] about How to calculate accounts payable turnover ratio

When most beginners hear the word assets, they think only of cash in the bank. In real life, assets are much wider than that. Assets are all the useful things a business owns that help it run day-to-day or earn money in the future.In this guide, we will understand what assets really mean, the two main types of assets, and how they work inside small and big businesses around … [Read more...] about Beginner’s Guide to Understanding Assets on the Balance Sheet – What a Business Really Owns

Many investors believe price to book ratio is a important factor when looking for a bargain in the market. Price To Book Ratio is calculated to compare market price of a stock with its book value.Price to Book (P/B) ratio is calculated by dividing current market price of the stock by the book value per share. Its also called as market-to-book ratio.Investors widely … [Read more...] about What is price to book value ratio and how to calculate it

A company’s balance sheet has three major sections, assets, liabilities and stockholders’ equity. Liability represents the total debt of the company and owner's capital represents shareholders’ ownership. Liabilities and owner's capital are the two major sources of financing the assets of a company.Total assets must equal the total liabilities and stockholders equity in … [Read more...] about What is Shareholders’ equity on the balance sheet

Bearish and bullish piercing candlestick patterns are considered as a signal for trend reversal. In a downtrend, a bullish piercing pattern (also called simply the Piercing Pattern) signals a trend reversal to the upside. Similarly, in an uptrend, a bearish piercing candlestick pattern signals a trend reversal to the downside.The Bearish piercing pattern is known as the … [Read more...] about Bullish Piercing Candlestick Pattern Explained