Buying stocks of a company makes one a proportional owner of it. Suppose there is a company whose shares you own. This company made about Rs.2,140 crore net profit in a financial year (FY). Let’s assume that this profit was also collected as cash in the same FY. If you are a majority shareholder of…
The cost of capital is the cost that a company must bear for the funds it has raised to do the business. Doing business calls for arranging cashflows both for short and long terms. There are two ways companies can raise money. The first is through equity. This is done by the distribution of ownership among…
Introduction: Why to bother about building an alternative income source? Because every extra penny added to the wallet will add weight. Moreover, the long term goal for “second income” is to become big enough so as to cover the total expense requirements of life on its own. But what if the alternative income is not…
I was doing a detailed analysis of profit margin of few Indian companies. Two names that came to my attention were HEG and Graphite India Why my stock screener flagged these companies to me? Because between a period of Mar’2014 and Nov’2018, in a span of 4.5 years, these stocks were giving a return of…
![ROI Formulas: CAGR and XIRR, Meaning, Full Form, Use in Excel [Mutual Funds]](https://ourwealthinsights.com/wp-content/uploads/2018/04/How-to-measure-investment-returns-Image.jpg)
Generally, we invest money in two forms. The first is in lump-sum, like a one-time investment. We also invest systematically, small-small amounts each month. How to measure return on investment (ROI) in each case? We all know how to do it, right? To measure returns we commonly use this formula: Returns = profit/investment x 100….
