Current Ratio – Formula, Meaning, Assumptions and Interpretations
February 12, 2025
Banking as a service is set to transform the commercial banking industry. It is the latest buzzword in the commercial banking industry and almost every well-known commercial bank is allocating billions of dollars from its budget to get this model implemented at the earliest. This is because there are several advantages to implementing banking as […]
In the previous article, we have discussed how important revenue modeling is and the techniques which are used by companies to ensure that their revenue models are accurate and up to date. Once the revenue modeling is complete, the next step in the process refers to the modeling of expenses. This process is challenging because […]
The Importance of Major Pairs The Forex market is a place where trading happens in all currencies. However, the volume of trade that is conducted in different currencies is very different. Hence, even though there are hundreds of currencies in the world, about two thirds of the massive $4 trillion dollar Forex volume is transacted […]
Companies want to go public because it helps them raise cash, which can be used for further expansion. However, the promoters of these companies often do not want to go public since this would mean that their stakes would be diluted and that they would lose control over the company. A low promoter’s stake in […]
Municipalities use a wide range of financial instruments in order to borrow funds from the money market. This includes the issuance of short-term debt as well as commercial paper. However, over time they have started using one more type of financial instrument. This instrument is called variable rate demand obligation and is the result of […]
Ratio analysis is one of the oldest methods of financial statements analysis. It was developed by banks and other lenders to help them chose amongst competing companies asking for their credit. Two sets of financial statements can be difficult to compare. The effect of time, of being in different industries and having different styles of conducting business can make it almost impossible to come up with a conclusion as to which company is a better investment. Ratio analysis helps creditors solve these issues. Here is how:
Here is where the investors get the data they require for ratio analysis:
Your email address will not be published. Required fields are marked *