Cash conversion cycle reveals the days payables adjusted days in getting back the cash that goes out in the operations…
Lower the operating cycle of a firm, better is its working capital efficiency
Compute non-cash working capital for past five years to understand the trend and use it to predict its future course
It is best to consider debt to be the sum of both long-term and short-term lease obligations & borrowings
Risk-avoiding investors looking for stable and regular returns may pick up their choice of stocks using the stable firm test
Fixed Assets Turnover is computed by dividing the revenue of a firm by its tangible fixed assets.
If the Z score is less than 1.81, the firm is a bankruptcy candidate
A firm with excess return for its debt and equity investors is efficient in managing its explicit and implicit profitability
Higher reinvestment rate reflects higher growth rate in earnings for shareholders
A firm should have positive figure for cash from operations to attract the attention of investors
A firm should earn an ROE which is higher than its ROC to make its stock worth buying
PBT & PAT are the line items of interest for equity investors to assess the attractiveness of the stocks
We need to know the application of EBITDA & EBIT to arrive at a correct valuation of firms
Higher the gross profit margin, better the firm’s efficiency in managing its production expenses
Growth rate is an important input in the processes of valuing a stock
Piotroski’s F score looks at profitability, leverage liquidity and source of funding, and operating efficiency
The ongoing cricket tournament has lessons for young investors on making every rupee count
We must create a fund in APJ Abdul Kalam’s name and use the money earned for economic and social growth
