Equity Investments
What are Equity Investments? Equity investments are nothing but buying into the stocks and shares of companies. Retail, as well as institutional investors, invest into equity for a number …
Net Cash Flow
What is Net Cash Flow? Net cash flow means the amount of cash generated by an operating business over a period of time say one year, six months or …
Days Working Capital (DWC)
What is Days Working Capital (DWC)? Days working capital is a very important performance indicator of efficient working capital management. Lower the days of working capital, better is the …
Working Capital
What is Working Capital? Working capital is the capital used for running day-to-day operations of a business. Commonly the gap between the current assets and current liabilities is called …
Limitations of Financial Statements
The primary limitation of financial statements is its heavy reliance on historical costs, indifference to inflation, prone to frauds, easily manipulated, etc. Financial statement limitations are relatable with current …
Secured Loans
What is Secured Loan? Secured loans are defined as loans where the lender extends loans only against deposition of some asset as security. Assets could be any asset ranging …
Value of a Firm
Value of a Firm – Definition A firm’s value, also known as Firm Value (FV), Enterprise Value (EV) is an economic concept that reflects the value of a business. …
Advantages and Disadvantages of Working Capital Management
What is Working Capital Management? Working Capital Management is a strategy framed and adopted by business managers to monitor working capital (working capital means current assets and current liabilities) …
Agency Theory in Corporate Governance
Meaning of Agency Theory Agency theory examines the relationship between the agents and principals in the business. In an agency relationship, two parties exist – the agent and principal, …
Debt Financing
What is Debt Financing? Debt financing is a means of borrowing money from retail or institutional investors. Such funds are raised through the issue of bonds, bills or securities …