Introduction: Why Currency Risk Matters In today’s interconnected global economy, Indian companies that engage in international trade often face a hidden challenge: currency risk. This risk arises when companies receive payments or make payments in foreign currencies. Fluctuations in exchange rates can lead to unexpected losses or reduced profits. So, how can Indian businesses protect…
Yield Measures on Bank Certificates of Deposit Suppose an investor is comparing the following two money market instruments. Which offers the higher expected rate of return, assuming that credit risks are the same? A 90-day commercial paper (CP) issued by Bright Wheel Automotive Corporation (BRWA), quoted at a discount rate of 0.100% for…
Cash Flow Statement Analysis: Cash Flow Ratios Introduction Analyzing cash flow statements is essential for assessing a company’s liquidity, solvency, and overall financial health. In the exam, understanding cash flow ratios helps candidates evaluate a company’s ability to generate cash, meet obligations, and sustain operations. These ratios are divided into performance (profitability) ratios and coverage…
Understanding of Balance Sheets A balance sheet provides the financial position of a company at a specific point in time. The position of the company is divided into three main sections: equity (ownership), assets (resources), and liabilities (obligations). Importance of Balance Sheet: To analyze the company’s financial position: It helps in understanding the assets, liabilities,…
Financial analysis is not just about evaluating a company’s data; it is also the process of understanding the company’s position and performance. Process of understanding the company’s position and performance. Purpose of financial analysis Data Collection Processing the Data Analyze/interpret the data Develop and communicate conclusions and recommendations Follow-up. Purpose of financial analysis :-
Financial Management for Small Business By: Shahid Siddiqui ———————————————————————————————– Chapter Overview: Introduction to Financial Management Setting Up Your Financial System Bookkeeping Essentials Managing Payables and Receivables Effective Loan Management Budgeting and Forecasting Financial Statements and Analysis Compliance and Regulatory Requirements Cash Flow Management Risk Management and Insurance Tax Planning and Management Technology in Financial Management…