How to Conduct Discriminant Analysis to Predict a Company's Power?

Probir Banerjee

Updated on 23-May-2022 12:21:45

What is Discriminant Analysis?Discriminant analysis is a widely used tool in Machine Learning, Statistics, and Finance. It is a manner to classify the targets based on some assumptions, and then use them to predict the future of a process. As is obvious, since investors and analysts want to predict a ... Read More

Parametric and Non-Parametric Methods of Efficiency Analysis of Company

Probir Banerjee

Updated on 23-May-2022 12:13:27

Parametric Methods of Efficiency Vs Non-Parametric Methods of EfficiencyParametric and non-parametric methods of efficiency measurement have gained significant momentum in the current decade. However, the choice of the method for efficiency management has been a matter of lengthy debate. The parametric method has the advantage of being free from the ... Read More

What are the Limitations of Ratio Analysis?

Probir Banerjee

Updated on 23-May-2022 12:09:21

What is Ratio Analysis?Ratio analysis is a good way of comparing the conditions of a business with its peers. It helps businesses understand their own strengths and weaknesses.Ratio analysis are basically tools to measure the various relationships between two or more financial items. It also helps businesses compare themselves with ... Read More

What is the Purpose of Inter-Firm Comparisons?

Probir Banerjee

Updated on 23-May-2022 12:06:15

What is Inter-Firm Comparisons?Financial ratios can be compared with one another in order to get a gist of the performance and other attributes of a company in relation to the other major firms. Such a performance of a company that shows the financial ratios is known as Cross-Sectional Analysis or ... Read More

Trend Analysis Vs Ratio Analysis

Probir Banerjee

Updated on 23-May-2022 12:02:28

Businesses use past and present data in order to find a pattern and predict the future. This review of past and present forms of data is usually known as Trend Analysis which is one of the most popular tools in the hands of financial analysts and managers. Ratio analysis, on ... Read More

How to Analyze Comparative Financial Statement?

Probir Banerjee

Updated on 17-May-2022 09:10:49

What is Comparative Financial Statements?Comparative financial statements provide a comparison between key financial metrics for two consecutive years. It is a very useful tool to check whether the company’s financials are moving in the right direction. It is a document that lists two or more years of financial performance of ... Read More

Comparative Financial Statement: Definition and Purpose

Probir Banerjee

Updated on 17-May-2022 09:07:56

What are Comparative Financial Statements?Comparative financial statements are statements which show a company’s statement in two or more consecutive periods in a single statement. Usually, the entities included in the comparative financial statements include balance sheets, profit and loss accounts, and cash flow statements for two consecutive years.The idea behind ... Read More

How is Equity Growth Measured?

Probir Banerjee

Updated on 17-May-2022 09:04:12

What is Growth Rate?The growth rate of a company is its ability to grow using and investing whatever it has in its operations. The rate is a measure of the capability of a company to have an efficient mechanism of operations that could churns out more profits in two comparable ... Read More

Role of DuPont Analysis in Assessing Company's Earning Power

Probir Banerjee

Updated on 17-May-2022 08:52:39

What is DuPont Analysis?The DuPont Analysis is a financial model that offers insight into the basic performance of a company. It breaks down the Return on Equity (ROE) into three key individual metrics to do so. The DuPont analysis is a product of asset turnover, gross profit margin, and operating ... Read More

What is Meant by Earning Power?

Probir Banerjee

Updated on 17-May-2022 08:49:24

Definition of Earning PowerA company’s ability to generate profit from its operation is known as the company’s earning power. In other words, earning power is a company’s capability to generate profit from operations. The generation of profit is compared against the goods and services offered in a particular industry to ... Read More