How to connect the ship with the ocean ?????
Sunday, February 24, 2013
Saturday, February 23, 2013
Market Principles
In the Market, there is no 'Why', only 'What is there' and 'How to Act'.
Where, How much, When
Friday, February 22, 2013
How to learn
......................"When you first learned about trees as a child, someone no doubt pointed to one and said “Tree!” and not “Norway Maple!” and certainly not “Acer platanoides!” Only later did you learn there are many types of trees, alike in some ways and different in others. his method of learning employs the concept of abstraction, and our brains are indeed wired for it."..............
Thursday, February 21, 2013
Wednesday, February 20, 2013
Friday, February 8, 2013
Thursday, February 7, 2013
On controlling It
I am not being able to control It.
I should not try to control It.
I should stop fighting with It.
Wednesday, February 6, 2013
On Greatest Suffering
Question: What is the greatest suffering ?
Answer: What is inside is not outside and what is outside is not inside.
Monday, February 4, 2013
Saturday, February 2, 2013
Cash Flow can be derived from current Income Statement and current and previous Balance Sheets.
Balance sheet, Income statement, Cash flow statement
Top Line --> Revenue
Middle Line --> Gross Profit (Revenue - COGS/COS)
Bottom Line --> Net Profit
COGS - cost of goods sold
COS - cost of service
S,G&A - Selling, General and Administration
EBITDA - Earnings before Interest, Taxes, Depreciation & Amortization
EBIT - Earnings before Interest & Taxes
Income statement
Revenue
(COGS) GROSS PROFIT
(SGA) EBITDA
(Depreciation) EBIT
(Interest)
(Taxes)
Net Profit ------------- Retained Earnings, Shareholder's Equity, Dividends of Balance Sheet
Interest Rate ------------ Rate of Change
Ratios
Profitability Ratios
From Income Statement Only
- Gross Profit Margin Percentage : Gross Margin = Gross Profit / Revenue --> Shows the basic profitability of the product or service itself before expenses or overhead are added in. It tells how much of the dollar one gets to use in the business and how much one pays out in direct costs (COGS or COS), just to get the product produced or service delivered.
- Operating Profit Margin Percentage : Operating Margin = Operating Profit (EBIT) / Revenue --> It indicates how well a company is running its entire business from an operational standpoint.
- Net Profit Margin Percentage (Return on Sales or ROS) : Net Margin = Net Profit / Revenue --> It tells how much out of one dollar the company keeps after everything else has been paid out.
From both Income Statement and Balance Sheet
- Return on Assets (ROA) : ROA = Net Profit / Total Assets --> ROA shows how effective the company is using those assets to generate profit. It is a measure that can be used in any given industry to compare the performance of companies of different size.
- Return on Equity (ROE) : ROE = Net Profit / Shareholders' Equity --> ROE tells what percentage of profit the company make for every dollar of equity invested in the company. It is also a indication whether the company is even capable of generating a return that is worth whatever risk the investment may entail i.e. from the investor's perspective it can show what risk/return of his equity from the company.
Leverage Ratios
Liquidity Ratios
Efficiency Ratios
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