The Liquidity ratio specifies the liquidity condition of the company and provides the capability of the company to pay all the short term obligations. This also specifies if the company has enough cash or not to meet its short term liabilities. The mainly used liquidity ratios are Current Ratio, Quick Ratio and Cash Ratio. Current […]Continue Reading... No Comments.
Financial Ration analysis is used to analyze the financial condition of a company or compare its financial health with other peer group companies. Financial Ratio can be used for the following cases To compare the financial health among peer companies To compare two companies from different industries To check the financial performance and compare with […]Continue Reading... No Comments.
The cash flow statement provides the cash inflow and outflow related information which is not available in the balance sheet and income statement. The cash flow statement is very much important in the following aspects It provides the information about the cash inflow and outflow of the company during a period. It provides the information […]Continue Reading... No Comments.
The Balance Sheet contains the financial condition of a firm at a particular point of time. Here, the term ‘at a particular time’ is very important for its definition as it does not specify the condition over a period of time. If anyone wants to look at the financial condition at a particular time, he […]Continue Reading... No Comments.
Balance Sheet The Balance Sheet contains the financial condition of a firm at a particular time. This includes the assets, liabilities, equity capital etc. Assets = Liabilities + Equity Capital Income Statement Income statement contains all the income and expense related details of a company over a period of time. This includes all types of […]Continue Reading... No Comments.
Financial Reporting refers to the process through which companies show their financial performance and other details to all the stake holders of the company including the investors, creditors and other parties by preparing proper financial statements. Financial statement should contain all the information to help to take the decision to invest in the particular company […]Continue Reading... No Comments.