Debt-to-equity ratio or Shareholder Equity Ratio is a financial ratio that indicates a ratio between the equity of a shareholder and the debt concerning the financing of a company’s assets. It is also called the shareholder equity ratio, gearing, risk or leverage.
Debt Ratio is an important financial indicator which helps investors whether the company has more assets or is suffering from financial instability due to higher debts. A higher debt is not suitable to invest for investors. Read this article to know more.
Factors that entail a general effect on the overall performance of financial markets lead to financial losses for companies, banks and other financial entities. Such a probability of financial loss due to hindrances in financial markets is called market risk. When not managed well, market risk poses a serious issue for banks and companies.
Return on Equity is a powerful tool that offers deep insights into a company’s profitability and efficiency in using shareholders’ equity.
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.
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.
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.
