Abhishek Bansal

We are dedicated to providing educational resources to help you learn and improve your financial literacy, investing knowledge from basic concepts to advanced level strategies, understanding of stock market, personal finance, financial statement analysis, companies and their business analysis, understanding & analysis of industry & sector, quantitative & qualitative analysis, fundamental analysis, value investing, forecast the future revenues, earnings etc., with the aim to make financial education accessible to everyone and empowering the individuals to dictate their financial future as per their own informed decisions.

Expense Ratio: The Cost of Investing | Why Savvy Investors Watch This | Smart Investing: Understand Your Expense Ratio | Definition, Significance, Formula, Example, Impact

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Expense Ratio: The Cost of Investing By Abhishek Bansal

What is an Expense Ratio in Mutual Funds and ETFs (Exchange Traded Funds)? | How does the Expense Ratio work? 

Expense Ratio is also known as the “Gross Expense Ratio”. It is the annual cost of investing which is subjected to the size of the fund, duration and exit/maturity, generally larger fund base has lower expense ratio. It includes the portfolio management and administration fees, advertisement & marketing costs, distribution cost and other operating costs of the fund. Usually, all the AMCs and fund houses clearly mention the expense ratio with the particular mutual fund scheme on their official website and prospectus of the scheme.

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Debt to Equity Ratio: A key leverage metric | Assess the financial stability of a company | What if a company has high debt-to-equity ratio

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Weekly One Liners Digest - Finance and Accounting by Abhishek Bansal

What is debt-to-equity ratio? | How to interpret D/E ratio? | How to analyze company’s risk using the debt-to-equity ratio?

The debt-to-equity ratio (aka debt to equity ratio or D/E ratio or debt-equity ratio) is one of the most vital metrics and a leverage ratio to analyze the financial stability of a company and its business. Company’s total interest bearing liabilities (debts) is compared with the total of shareholders equity of company. The liabilities may be short term or long term or both. The D/E (debt to equity) ratio is used most widely among investors, analysts and lenders to assess the financial health of company’s business. Strategic and appropriate management of debt can help businesses for growth.

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Annual Report: Why savvy and big investors read the Company’s Annual Report

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ANNUAL REPORT

What should be read in Annual Report

An Annual Report is more than just numbers; it gives great and more useful insights about company and its business. It highlights the company’s future prospects and management concerns. As a careful reader, we need to focus on following key parts of an annual report –

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Return on Equity (ROE) | Limitations | Risks | Importance | Formula

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RETURN ON EQUITY (ROE)

What is Return on Equity (ROE)

The Return on Equity (ROE) is one of the most important ratios to assess a company. It is considered as a conservative ratio to analyze a company, however, only ROE analysis is not enough; the analysis of other ratios is necessary to make an investment decision. To calculate ROE, company’s net profit is used as numerator and the total of average equity of shareholders is used as denominator.

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Audit: Limitations, Types, Importance | Auditors | Accounting vs Auditing

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Audit | Auditor | Auditing | Accounting vs Auditing

Audit & Auditors –

What is an Audit? –

Audit is a systematic process of examining the financial statements of public companies to verify its accuracy, fairness and compliance with certain standards such as – International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP).

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10 Profitability Ratios: Key Metrics for Business Growth

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Profitability Ratios

Profitability Ratios: Definition, Types and Use in Businesses

Profitability Ratios are most important metrics used for financial analysis of a company and its business. Profitability ratios show how profitable a company and its business at different levels of profitability. Profitability ratios determine that is a company worthwhile to invest or not.

जानिए कंपनियों के top executives और उनके कार्यों के बारे में

The insights of these ratios are useful when it is compared with historical trend of a company itself and its peers. In other words, these ratios for a company gives valuable insights for decision making when a company is compared with industry peers, or historical data of itself. It is better to compare for same period such as – comparison of a year’s first quarter with the first quarter of the previous year to measure quarterly change on YoY (Year-on-Year) basis. Consecutive quarters are also compared to know the change.

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Avoid 12 Biggest Investment Mistakes

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BIGGEST INVESTMENT MISTAKES

12 Biggest Investment Mistakes People Make. Learn How to Avoid It –

There are many investment mistakes that individuals make with their investment decisions, which are as follows –

1. Understanding –

Not knowing what they are buying, to wit, a very large number of people don’t actually understand the industry, company and business model, in which they are willing to invested or have already invested.

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Treasury Stock: A Deep Dive

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Treasury Stock

Treasury Stock: Strategy of Company Behind It l It’s impact on Balance Sheet and 4 limitations

Definition

When a company buys back its shares, it is known as “Treasury Stock” until the company resell or cancel these shares. It is also known Share Repurchase or Share Buyback by the company.

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