INTRODUCTION A company’s finance team one of the job is to evaluate whether their company can meet the unexpected short term liability without the need to rely on outside sources

WHAT IS MARKET TO BOOK RATIO? The market to book ratio is also known as price-to-book ratio or P/B ratio and it is a financial valuation metric used to measure

WHAT IS DISCOUNTED CASH FLOW (DCF)? Discounted Cash Flow is one of the financial valuation model and is used widely to estimate the value of an investment, valuation of a

WHAT IS LEVERAGE RATIO? A company’s inherent financial risk can be measured by one of the financial instruments called the Leverage Ratio which quantifies the reliance of the company on

WHAT IS THE PRICE TO EARNINGS RATIO? The Price to Earnings Ratio is the financial metric that helps in comparing the price of the company’s stock to the net earnings

WHAT IS AN INCOME STATEMENT?  A company’s financial performance over any specific accounting period is reported using three most important financial statements: The Balance Sheet, the Income Statement and the

An investor or a financial analyst calculates varies ratios using the income statement and balance sheet of the company to analyze the performance and profitability of the company. Some of

WHAT IS AN ANNUAL REPORT? Every public corporation is required by law to publish annually a report named Annual Report. The report describes to its current and potential shareholders the

WHAT IS EBITDA? The term EBITDA stands for Earnings(E) before(B) Interest(I), Taxes(T), Depreciation(D) and Amortization(A). At many places we may see EBITDA categorized as one of the profitability financial ratios,

WHAT IS CAPITAL ASSET PRICING MODEL (CAPM)? Capital Asset Pricing Model is one of the financial models used by the corporate finance professionals and Investment Bankers to establish and understand