Finance

Free cash flow means the amount of cash remaining with the company after paying for its operating costs, inventory and to buy fixed assets. This means free cash flow refers to the cash flow from operating activities minus capital expenditures during the financial year. Free cash flow is also referred to as FCF. We can also define free cash flow as the amount of money the … [Read more...] about Free cash flow (FCF): What is it and how to calculate and interpret

All listed companies must report their segment wise revenue and results for the reporting period. It will enable the stakeholders to have insight into the entity’s operations from the perspective of that company’s management. For instance if a company has multiple business activities, then the users of the financial statements should get information about the performance of … [Read more...] about How segment wise revenue and results are reported and analyzed

Every investor has one goal in mind when they invest: to make money. Due to this reason many investors are interested to know what kind of return they are going to get before investing in anything. In this regard, annual return is used as a measure to report the historical rate of return of investments. Here is a list of the most important tools used to measure rate of … [Read more...] about How to calculate the annual return of an investment

If you are following financial news channels, websites and research reports, then by now, you must have heard about CAGR. In case till now, you are not able to figure out what is the CAGR? and how compound annual growth rate is calculated, then this article might be a great help. CAGR stands for the Compound Annual Growth Rate. Compound Annual Growth Rate (CAGR) is a … [Read more...] about CAGR: How to calculate Compound Annual Growth Rate

Profit is vital for monitoring a company's performance as it represents positive net cash flow to the business. In business, profits, earnings and incomes are used interchangeably. It's the amount that is left over after accounting all the expenses against revenue. We have different types of profits calculated based on how expenses are incurred by the company. One of such … [Read more...] about Operating Profit: Definition, Formula and Use

EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation, and Amortization.  While conducting financial analysis, the EBITDA to sales ratio used as a financial metric to know the company's operational efficiency. EBITDA margin is calculated by dividing earnings before interest, tax, depreciation and amortization by total sales. It's used as a measure … [Read more...] about EBITDA: What it is and how it’s calculated

PAT stands for Profit After Tax. It's also referred to as net profit after tax.  One of the main objectives of a company is to increase shareholders wealth. It will increase only when the company earns money from its business. More money means more wealth. Due to this reason a company prepares periodical income statement to present before the shareholders. Income … [Read more...] about What is profit after tax (PAT) and how is it calculated

Return on assets, popularly referred to as ROA, is a financial ratio that indicates profitability of a company in relation to its total assets for a period. Retrun on assets shows how efficient the management is in generating profit by using the company's assets. In this article you will learn how to calculate return on assets and how to interpret the ratio to understand … [Read more...] about Return on Assets (ROA): How to calculate and use in financial analysis

In technical analysis we have different indicators to measure the movement of price for trading. One of such indicators used along with price action is VWAP. Price action of a stock or any other financial security can be analysed by using candlestick charts and price patterns. VWAP can be used along with other indicators for intraday trading. It looks similar to moving … [Read more...] about Understanding Volume Weighted Average Price (VWAP) for intraday trading