Ratios Shareholders Are Most Interested In

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

1K+ Views

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 interested in investing their money in profitable stocks, the following are the ratios that have proved to be most useful.Net Working Capital RatioWorking capital shows a company’s capacity to pay its liabilities with its current assets. Working capital measures the liquidity of a company. In other words, working capital is ... Read More

Importance of Profitability Ratio

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

1K+ Views

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 profits so that it can accumulate earnings and invest them in an expansion project. Investors and lenders invest money in a company to get profitable returns. Without profit, no company can last for a long period of time. So, it is an item no company should avoid.However, it is inappropriate ... Read More

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

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

517 Views

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 make it simpler, let us check the meaning of the two terms in detail.Profit After-Tax (PAT)PAT is the amount a company retains after paying all the non-operating and operating taxes, expenses, and liabilities. This is the profit that is distributed among the shareholders of the company. Alternately, a company may ... Read More

Define Investment to Measure Profitability Ratio

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

203 Views

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 common assumption of ROI is given as follows −$$\mathrm{ROI\, =\, \frac{PAT}{Investment}}$$However, it is incorrect to use PAT in measuring returns on Income because PAT is the residue income of shareholders. It is not the overall amount of funds invested by the lenders and general shareholders.Also, PAT is affected by a ... Read More

Differences Between Barcode and QR Code

Bhanu Priya
Updated on 17-May-2022 07:09:39

10K+ Views

Let us understand the concept of barcode and Quick Response (QR) code.Bar CodeA bar code reader decodes the data contained in the barcode and sends it to the computer. It produces a beam of light or a laser beam to read barcodes which is reflected by the bar code image. A light sensitive detector which is present in the reader identifies the bar code by recognizing special bars on both ends of the image. With the help of these special bar’s reader is able to identify whether the bar code has been read right side up or upside down.Once a ... Read More

Differences Between Barcode and NFC

Bhanu Priya
Updated on 17-May-2022 06:47:25

671 Views

Let us understand the concept of Barcode and Near Field Communication (NFC).Bar CodeA bar code reader decodes the data contained in the barcode and sends it to the computer. It produces a beam of light or a laser beam to read barcodes which is reflected by the bar code image. A light sensitive detector which is present in the reader identifies bar code by recognizing special bars on both ends of image. With the help of these special bar’s reader is able to identify whether the bar code has been read right side up or upside down.Once a barcode is ... Read More

Differences Between FASTag and NFC

Bhanu Priya
Updated on 17-May-2022 06:43:21

976 Views

Let us learn the concepts of Fastag and Near Field Communication (NFC).Fast TagFASTag is an electronic scanner system used for toll collection in India, which is operated by the National Highway Authority of India.It incorporates the Radio Frequency Identification (RFID) technology for doing toll payments either prepaid or from savings accounts which are linked to it or directly toll owner.The RFID enabled sticker which is fixed to a vehicle’s windshield, and a reader at the toll booth are used to scan this card and wirelessly and automatically processes the payment.When we pass a FASTag-enabled toll plaza, we don’t need to ... Read More

Differences Between FASTag and Barcode

Bhanu Priya
Updated on 17-May-2022 06:35:54

531 Views

Let us understand the concepts of Bar code and Fastag.Bar CodeA bar code reader decodes the data contained in the barcode and sends it to the computer. It produces a beam of light or a laser beam to read barcodes which is reflected by the bar code image.A light sensitive detector which is present in the reader identifies the bar code by recognizing special bars on both ends of image. With the help of these special bar's reader is able to identify whether the bar code has been read right side up or upside down.Once a barcode is identified by ... Read More

Significance of Taj Mahal

Rashmi Iyer
Updated on 17-May-2022 06:28:53

5K+ Views

Considered one of the Seven Wonders of the World, the majesty, and grandeur of Taj Mahal makes it an appealing site for millions of tourists. This monument located in Agra, Uttar Pradesh besides the bank of river Yamuna, is a symbol of Mughal Architectural beauty at its epoch.The monument complex stands as a symbol of the story of Shah Jahan and Mumtaz and also a testimony of the hundreds of laborers who contributed their blood and sweat in the construction of this monument. Taj Mahal stands as a mark of excellence in architecture.Some key points about Taj Mahal can be ... Read More

What is Stock Acquisition?

Nagasravan Tamma
Updated on 16-May-2022 15:14:23

414 Views

If the buyer wants to acquire stocks of the targeted company directly from selling to the shareholders, then that acquisition is called stock acquisition. In this, a buyer will get the ownership in both assets and liabilities of the business.In stock acquisition, the buyer sees a potential growth in a particular company’s stocks and hence, the buyer may feel that the current liabilities are manageable or minimum. Buyer will prefer stock sale without necessity of ownership transferring of each stock. This kind of acquisition is a strategic decision of corporate finance roles.FactorsThe factors to be considered in stock acquisition are ... Read More

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