Introduction Cash Flow statement is one of the three financial statements prepared by a company. It details the cash inflows and outflows of a period to compute the net cash

Introduction Covenants refer to the contract, promise or agreement between two or more parties for carrying out particular activities. The purpose of debt covenants is to act as guidelines that

What is DuPont Analysis? F. Donaldson Brown developed the DuPont Analysis framework in 1914, later popularised by DuPont Corporation in the 1920s. The DuPont analysis evaluates a company’s Return on

What is the Loan to Deposit Ratio?  Loan to deposit is a financial measure that investors and banks use to assess a bank’s economic health and liquidity. We calculate loan to deposit ratio

Introduction In today’s dynamic business landscape, companies constantly seek ways to enhance their decision-making processes and drive sustainable growth. Here, Financial Planning and Analysis (FP&A) plays a crucial role in shaping

What is Credit Ratings? Credit Ratings is the assessment of an individual, business or state’s ability to repay its debt. Credit ratings provides third-party insights about the borrower’s creditworthiness and

What is the Board of Directors ? The Board of Directors (BOD) is the governing body elected by shareholders to govern and guide the organisation’s work. The BOD works to maximise the

What is the Sharpe Ratio? The Sharpe Ratio, also known as the Sharpe Index, was proposed by William Sharpe in 1966. Professor Sharpe derived a formula which compares the return on

What is Tax Shield? Tax shield refers to the reduction in the value of the taxable income of an individual or a corporation. Individuals or businesses can claim a tax

What is a Share Buyback? Share Buyback, also called Share Repurchase, is a financial decision companies make to repurchase their outstanding shares from the market. A company may use the