Qualitative Analysis Qualitative analysis involves evaluating a company’s performance to assist investors in selecting profitable stocks. A company’s past performance is crucial in predicting its future profitability. Profit and Loss Analysis A balance sheet details a company’s sources and uses of funds at any given point in time. Cash Flow Statement Cash generation is vital …
Quantitative approachCompany analysis here has two approaches: one is qualitative, and another is quantitative; we discuss the qualitative approach. In fundamental analysis, we analyze industry and economic analysis but investment selection on a company based on industry analysisis a tiring job a part of this analysis of a company is necessary forfuture growth because future …
In part two ratio analysis, we discuss the liquidity ratio. The liquidity ratio consists of the current rate, acid test the ratio and cash ratio.1) Current ratio- The current ratio is the most widely used liquidity ratio to measure how a business can survive in the future; if a company is unable to pay its …
Ratio analysis for stock selection is the process that can be performed step by step for the selection of stock, so many steps follow, such as financial analysis. Income statement analysis is which includes profit and loss, balance sheet analysis, and cash flow analysis. Among these steps, one of the important analyses is ratio analysis.Now, …
Strategy to find value stock Everybody wants to invest money. They have different life goals; there are so many ways to invest money and bank deposit assets; Everyone has different life goals, which can be categorized as short-term, long-term short-term goals may be for 1 year or less, medium-term goals 1to 5 years, and long-term …
Personal financial planning Financial planning, as words, means something about finance or personal finance. In everyday life, people always talk about handling or managing money for future needs. Every person who is earning a billion or thousand needs to manage money on their part. It depends on person to person how they invest, save, and …
How to select stock How defensive investors select in broad categories of security. A defensive investor should purchase high-grade bonds and follow a diversified portfolio of leading stocks. The defensive investor has a choice of two approaches: an index-type portfolio and a quantitatively tested portfolio. 1) Index type portfolio – He acquired a section sample …
Understand inflation Inflationis a critical economic phenomenon characterized by a rapid rise in the general price level, which results in a notable decline in the value of money.**Types of Inflation:**1. Demand-pull effect2. Cost-push inflation3. Built-in inflation4. Creeping inflation5. Moderate inflation6. Suppressed inflation7. Hyperinflation **Causes of Inflation: action indicates a sustained decline in real money balances. …
How inflation affects investment Every individual who is earning wants to save money, but inflation affects purchasing power and savings; if we spend less, we save more, but the high price of goods and services affects everybody’s earnings. Cause of inflation The primary cause of Inflation is when the demand for goods and services …