Cash flow chart is analytical tool that brings real added value to the financial analysis process. It tracks all cash flows & cash receipts.
Debts and Equity Financing
Companies mainly have two forms of funding options for raising capital for business needs: equity financing and debt financing. Most businesses use a mix of debts and equity financing, but each has its own set of benefits. Companies usually have the option of seeking debt or equity funding. The decision is also based on which source of financing is the most convenient for the company, its cash flow, and how important it is to the company’s principal owners to retain control.
The hallmark of the capitalized system is called the capital market. It is a market where the trading of securities, like bonds and stocks are held freely. The basic aim of the capital market is the use of idle funds into productive activities. Following are the main 4 types of capital market.
Financial Ratio Analysis
Financial ratio analysis is conducted to learn more about the accounts and businesses. Ratio analysis is useful in ascertaining the profitability of a company. It is useful in ascertaining the profitability of a company. The ability of a company to repay the liabilities is also determined from analyzing its financial ratio. Moreover, the working performance of the company is looked to check whether it has performed well in the current year as compared to the previous year. Comparison between the performances of different competitors is made through their financial ratio analysis.
Company Valuation:- Like any product we sell on the market, companies have value. Is the value of a company the same as the sum of the value of its assets? Moreover, Is there any objective method that will help us in the task of determining the value of the company?