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Quick assets are those assets that can be converted into cash within a short period of time. The term is also used to refer to assets that are already in cash form. They are considered to be the most liquid assets that a company owns. The Main Assets That Fall Under The Quick Assets Category … Read more
What Is Operating Leverage? Operating leverage measures a company’s fixed costs as a percentage of its total costs. It is used to evaluate the breakeven point of a business, as well as the likely profit levels on individual sales. Types of Operating Leverage High Operating Leverage In a high operating leverage situation, a large proportion … Read more
What Is NPV? The Net Present Value (NPV) is a method that is primarily used for financial analysis in determining the feasibility of investment in a project or a business. It is the present value of future cash flows compared with the initial investments. As an organization expands, it needs to take important decisions which … Read more
Financial leverage simply means the presence of debt in the capital structure of a firm. Similarly, in other words, we can also call it the existence of fixed-charge bearing capital which may include preference shares along with debentures, term loans, etc. For many businesses, borrowing money can be more advantageous than raising further equity capital … Read more
Leverage results from using borrowed capital as a funding source when investing to expand the firm’s asset base and generate returns on risk capital. Leverage is an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed capital—to increase the potential return of an investment. Leverage can also refer to the amount … Read more
What are Key Performance Indicators? Key performance indicators (KPIs) refer to a set of quantifiable measurements used to gauge a company’s overall long-term performance. These are business metrics used by corporate executives and other managers to track and analyze factors deemed crucial to the success of an organization. Effective KPIs focus on the business processes … Read more
Junk bonds, also known as high-yield bonds, are a type of fixed-income investment with a higher risk than investment-grade bonds. These bonds are issued by companies with lower credit ratings, making them riskier for investors. Despite their name, junk bonds can provide attractive returns for investors willing to accept the increased risk. This article will … Read more
What is Hedging? Hedging refers to buying an investment designed to reduce the risk of losses from another investment. It deals with reducing or eliminating the risk of uncertainty. The aim of this strategy is to restrict the losses that may arise due to unknown fluctuations in the investment prices and to lock the profits … Read more
Government securities play a crucial role in the financial market, serving as a means for the government to borrow funds from the public. These securities are considered safe investments, as the creditworthiness and stability of the government back them. In this article, we will explore the concept of government securities, their types, trading in India, … Read more
Dividends are regular payments a corporation can choose to issue to its shareholders, with the amount of payment to each shareholder commensurate with their number of shares. They may be paid as cash, additional stock, or property. When it is time to make dividend payments, corporations always pay preferred stock owners first, and then common … Read more
