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 subjective/qualitative consideration rather […]

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 of equity shares […]

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 is to indicate […]

ALPHABET [ A ]

ABC Methodology

A method of classifying stocks into categories in terms of importance. Commonly used in inventory management in a business which have large stocks of many different items. More emphasis is placed on higher value than on lower value items.

Abnormal item

Abnormal items are transactions or other events that are both “unusual in […]

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 little […]