The objective of this article is to emphasize the need for maintaining basic liquidity and solvency levels for a financially healthy company. We’ll learn about liquidy vs solvency from the eyes of a stock investor. We’ll look at the concept and financial metrics that will help to quantify and comprehend a company’s liquidity and solvency…
We as stock investors would like to invest in a financially stable company. What is the measure of an unstable company? A company that is on the verge of going bankrupt can be called unstable. Altman Z-Score is a financial model based on which bankruptcy can be predicted. The Altman Z-Score model can point toward…
Companies need cash to run their day-to-day operations. Working capital management focuses on factors that generate and consumes cash. A company must be capable of generating more cash than it consumes. Cash parked in the company’s bank account is not working capital. We will dig deeper to get a better understanding of the concept of working capital. What Is…
Talking about stocks, investing only in a financially healthy company is advisable. But it is easier said than done. Why? Because analyzing the financial health of a company is not easy for a novice? It is a thing that must be learned. In this article, we will try to do just that. Generally speaking, investors…
To do fundamental analysis of companies, it is important to look inside financial statements. There are three types of financial statements: The balance sheet, profit & loss accounts, and cash flow statement. These three documents has loads of numbers inside them. What a beginner should look for inside these reports? We will know about it…
