What is Scenario Analysis and sensitive analysis?
Scenario Analysis Scenario Analysis is a financial process through which investors & business managers can determine the amount of risk they are taking before making the investment or starting a new project. It is a way of structured thinking in which the earnings or value impact is computed for different interest rate scenario that may…
Read article
RBI elucidates eligible Non-Resident investment in debt instruments
RBI issued a Master Direction on January 7, 2025 – Reserve Bank of India (Non-resident Investment in Debt Instruments) Directions, 2025 Consolidating all earlier regulatory circular for debt instruments in India. These Directions shall be applicable with immediate effect. These Directions shall be applicable to all transactions by eligible non-residents in debt instruments. The following…
Read article
Different Users and Use of Ratios explained
Introduction Ratios are essential tools for assessing the earning capacity, financial soundness, and operational efficiency of a business organization. Accounting ratios, a group of metrics derived from financial statements, are widely used to measure management’s aptitude, efficiency, and profitability. By expressing relationships between various accounting data points, these ratios form the basis of ratio analysis.…
Read article
Meaning of Accounting Ratios and Their Purposes
Accounting ratios are metrics used to compare two or more financial data points from a company’s financial statements to measure its profitability, efficiency, and overall financial health. These ratios are typically expressed in various forms, such as proportions, fractions, percentages, or terms of the number of times one value relates to another. Equation for Ratios:…
Read article
What are working capital sources and working capital management?
Working capital is the operating capital of a business which is used in its day-to-day operations, calculated as the current assets minus the current liabilities. The positive working capital commonly indicates that a company can pay off its short-term liabilities almost immediately. Sources of working capital are Share Capital, retained profits, debentures, long-term loans, and…
Emerging Role of the Financial Manager in India
A financial manager plays a pivotal role in overseeing the financial health of an organization. Their responsibilities encompass a wide array of tasks aimed at ensuring the efficient utilization of funds while maintaining long-term financial stability. This article explores the key roles and responsibilities of financial managers in India. Key Responsibilities of a Financial Manager…
Read article