Key of Financial Analysis
Financial analysis is the process of identifying a company’s strengths and weaknesses by analyzing the financial statements.
Financial Analysis – Basics
Through financial analysis, it is possible to gain an accurate understanding of the success or failure of the organization’s financial operations and determine a future course of action.
Future Value of Money
Future value of money refers to the amount of cash that will be received at a certain time in the future if a certain amount of money is invested somewhere at a certain rate.
Concept of Time Value of Money
The value of money received in the future changes as time changes. This change in value of money over time is called time value of money.
Share Market
securities such as shares, bonds, debentures etc. of the company are traded is called stock market. Stock market plays an important role in raising capital.
Concept of Financial Market
Scenario 1: Red Bull owns a grocery shop; He needed a loan of $100,000 to set up another new shop to expand his business. Which he will repay the loan for 10 years.Scenario 2: “X” company in manufacturing business for long; presently they need to build a new factory to increase their production; Company “X” […]
Capital Market
Capital markets consist of individuals or institutions engaged in the collection and distribution of capital.
Goal of Finance
The main purpose of running a business is to make profit. In this case it can be said that 2 things are considered as the main goals of financing.
Relation: Finance and Macroeconomy
Macroeconomics is the overall discussion of the country’s financial system rather than individual or a particular institution.
Functions of Finance
“Function of Finance” refers to financial management activities that ensure the management and proper use of financial resources of a business or individual.