Return on Assets (ROA): Formula and “Good” ROA Defined
Return on Assets is used to measure the efficiency of a company by measuring how easily it generataes income using its assets. Higher the value of ROA, better the chances of making high income.
Finance
Account Officers – What Does an Account Officer Do?
A career in accounting is rewarding for those interested in finance. Account officers manage financial reporting, budgeting, and compliance, ensuring smooth operations.
Top 15 Finance Interview Questions and Answers with Practical Tips
Finance Interview Questions: Are you ready to tackle challenging finance interview questions and make a lasting impression? Preparing thoroughly for an interview is crucial to confidently answering even the toughest finance-related questions in interviews. Whether you’re applying for a financial analyst role or stepping into the finance industry, mastering finance interview questions and answers is …
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Cash Flow Statements – What It Is and How to Read One
Cash flow statements are financial documents used to track the flow of cash in a company. A positive cash flow statement sign indicates that the company is financially stable and can generate cash funds for daily operations, debts, and investing in growth.
Risk Management: Why is It Important?
Risk management is the process of identifying, assessing, analysing, and mitigating risk factors in finance or investment. The main focus is to reduce the losses due to unpredicted risks rather than completely eliminate it.
Fin Modeling: Definition, Examples, And Uses
“Fin Modeling is the process of creating a mathematical representation of the financial situation or performance of a business, project, or any other investment.”
What is Financial Advisory: Explained
“Financial advisory is a professional guidance provided by individual, business experts regarding financial investments. They provide informed suggestions to keep you on the growth side of your finance management. Let us learn more in this article.”
What Do You Mean By Ratio Analysis? Definition, Uses
Ratio Analysis is a method of analysing the financial health and conditions of an enterprise using various ratio metrics such as credit ratio, debt ratio, equity ratio, leverage ratio, profitability ratio, and more.
Understanding Liquidity Risk in Business and Banks with Examples
Liquidity Risk is a financial risk arising from a failure to convert financial entities or assets into cash without a substantial financial loss. It refers to the bank’s inability to fulfill its financial obligations which may even threaten its existence! In this article, we shall understand liquidity risk, its types, and why it matters, with suitable examples. We shall also look for ways to successfully manage it.
Understanding Operational Risk: Overview, Importance, And Examples
Operational risk is a probability of financial loss that arises due to a disruption in the operational functioning of the company. This may be due to a failed or ineffective internal process, people or system or may arise because of external events.