Probir Banerjee has Published 469 Answers

How to Analyze Comparative Financial Statement?

Probir Banerjee

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

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

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

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

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

Price-Earnings Ratio vs. Earnings Yield Ratio

Probir Banerjee

Probir Banerjee

Updated on 17-May-2022 08:44:23

What is Earnings Yield Ratio?Earnings Yield is the reciprocal of Price-Earnings, and it is expressed as a percentage. Earnings yield is the earnings per share divided by the market price of each share multiplied by 100. Earnings yield ratio offers an insight to the earning power of a share. If ... Read More

Which Ratios Shareholders are Most Interested in?

Probir Banerjee

Probir Banerjee

Updated on 17-May-2022 08:40:56

There are a lot of financial ratios to measure the relationships between different financial items, and they are useful for various types of calculations. Some ratios are more applicable to measure specific tasks and hence these ratios can be specifically applied to measure specific relationships.For the shareholders who are mostly ... Read More

What is the Importance of Profitability Ratio?

Probir Banerjee

Probir Banerjee

Updated on 17-May-2022 08:38:45

What is Profit?Profit is the difference between revenues and expenses, and it is the ultimate aim and output of a company. Profit is the fuel that propels businesses. A company must earn enough profits to sustain and grow. In order to make an expansion too, a company must earn enough ... Read More

Is Profit After-Tax (PAT) the same as Net Asset?

Probir Banerjee

Probir Banerjee

Updated on 17-May-2022 08:35:05

Although Profit After-Tax (PAT) and Net Asset seem to be the same, there is a difference between the two. PAT is related more to the operational efficiency of a firm while net assets are related to the value of assets.The two terms, however, can be misleading. So, in order to ... Read More

How to Define Investment to Measure the Investment-Related Profitability Ratio?

Probir Banerjee

Probir Banerjee

Updated on 17-May-2022 08:28:43

What is Return on Investment?The profitability ratio related to investment is Return on Investment (ROI). Return on Investment is the ratio that is sometimes expressed as Profit After Tax (PAT) divided by Investment. The investment represents the pool of funds accumulated by components invested by shareholders and lenders.So, the most ... Read More

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