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Daily(irregular ๐ ) dose of financial ratios by Anirudh Gupta Lets learn these two ratios 1.Capital turnover ratio: =Sales or Cost of goods sold/Capital employed Capital employed=Shareholders funds+ Non-current liabilities Purpose: -To understand, how many rupees of revenue are generated for every โน1 of capital invested in the business? -Tests the company usage of assets to generate sales. 2. Ebit margin =Ebit or operating profit /sales Purpose: -It measures the profit a company earns from its operations, before deducting interest and taxes, for every rupee of sales generated. -To judge the companyโs performance. These two ratios combined will result in a new ratio ,which we will discuss in the next post. It's actually a dead easy guess.Find it out! Stay tuned. Will come up with more posts which are not just limited to financial ratios.
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Daily dose of financial ratios by Anirudh Gupta Debt service coverage ratio: =Earnings available for debt services/(Interest+Installments) Where earnings available for debt services are EBITDA or EBIT based on the case. Purpose: -Yesterday,we d
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๐ฎ๐๐ ๐๐๐ ๐๐๐๐ ๐๐๐๐๐ ๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐ ๐๐ ๐๐๐๐๐๐ ๐๐๐๐ ๐๐๐๐ ๐๐๐๐ : "Boring Numbers or Money Magnets? The Financial Ratios That Matter" Ever wondered why some companies get all the investor love while other
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CA Aspirant|Content ...ย โขย 4m
Daily dose of financial ratios by Anirudh Gupta Quick ratio: =Quick assets/Current liabilities Where quick assets means, (current assets-inventory) Purpose: -Unlike the current ratio (as we have discussed in the previous post), the quick ratio s
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Daily dose of financial ratios by Anirudh Gupta Debt/equity ratio =Total debt/Shareholders equity Purpose: It helps users of financial statements understand how much debt the company is using for every โน1 of equity invested by shareholders. Cred
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๐ฏ Top 130 Most Consumed Financial Terms in business or startup World ๐ ( Part - 2 ) 131. Bootstrapping 132. Co-Founders 133. Angel Round 134. Crowdsourced Funding 135. Strategic Alliance 136. Business Incubator 137. Accelerator 138.
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