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Earlier article mentioned about cash flow statements are reliable whilst earnings can be manipulated by creative accounting/fraud. This article deals with another aspect of earning which is the quality of earnings. As investors or analysts the atttractives of an investment in a company is simply the quality of earnings. Quality of earning really depends upon [...] Earlier,the market/book ratio has been mentioned now we look at another useful market based ratio which is known as the Market value added ( MVA). MVA is the difference between the market value of the company and the total capital invested in the company. The formula of MVA is = market capitalization ( number [...] One of the essential ratio to investors and analysts is the market to book ratio. This ratio expresses the relationship between a company’s value in the stock market and the net asset value as per the company’s balance sheet. The formula is = market price per share/book value per share. The purpose of this ratio [...] ALPHABET [ A ] Arbitrage Trading strategies designed to profit from price differencesfor the same or similar goods in different markets. Historicall,the term implied little or no risk in the trade,but more recently it has come to suggest some risk of loss or uncertainty about [...] If we really want to be an analyst or wanting to have a very “detailed”information of the company,merely analyzing the annual report of a company might not suffice. Other sources of information are: company documents like promotional literature or brochures and catalogues which can give details of the products and prices and possibily [...] |  FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four,Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.Also author to another very popular free educational accounting cum finance blog:http://basiccollegeaccounting.com under the branding of College Accounting Coach. | |||||
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