From buying cassettes loaded with your favorite songs to having them all just one click away, music streaming platforms have brought the music industry on the rise.
These are company’s accumulated earnings which are converted into free shares that are passed on to the current shareholders by the stake held by each of them without charging any additional cost.
Through Bonus Issue, company restructures their Balance Sheet by transferring the profits kept idle in Reserves & Surplus to Capital.
10 Financial Terms every investor should know! PART - 3
1. EBIT 2. Asset Turnover Ratio 3. Quick Ratio 4. Operating Leverage 5. PB Ratio 6. PS Ratio 7. Dividend Payout Ratio 8. CFO 9. Capital Employed 10. Net Profit Margin
Let's understand in detail⤵️
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1. EBIT:
Earning before interest & tax is company's net income before income tax.
It is used to analyse performance of company's core operations with tax exp.
EBIT = Revenue - COGS - Operating Expenses
2. Asset Turnover Ratio:
ATR measures how effectively a company uses its asset to generate revenue. It compares the total asset with the net sales or revenue of the company.
MSSC: Deposits can be made only in the name of women or girl child
FDs: Anyone who is Resident Indian, Sole Proprietor, Partnership firm, or HUFs with the necessary PAN card details & KYC documents is eligible for FDs.
• Tenure
MSSC: Tenure of this scheme is up to 2 years & this scheme is available up to March 2025.
FDs: Tenure in FDs can range from 7 days to 10 years & investors can choose the tenure according to their requirements.
1. EBITDA 2. Operating Profit Margin 3. Profit After Tax 4. EPS 5. FCF 6. ROE 7. ROCE 8. Debt to Equity 9. Interest Coverage 10. ROIC
Let's understand each one in detail.
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1. EBITDA
Earnings before interest, tax, depreciation & amortization have imp relevance in financial statements as it is crucial indicator of earnings frm the company's operations.
OPM establishes the relation between the operating income of the company & revenue to estimate the profits made after paying off non-operating expenses.