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MARKET RATIO: Price-to-cash flows-ratio One of the business ratio analysis which we often come across is the Price-to-cash flow ratio. Append below in summary what is this market ratio is all about:- Ratio Price-to-cash flow ratio To measure whether a company’s share price is high or low in the context of its cash flow. Market ratio: Price-to-sales-ratio One of the business ratio analysis which we often come across is the Price-to-sales ratio. Append below in summary what is this market ratio is all about:- Ratio Price-to-sales ratio Measures the relationship between the value of stock and the level of company. PS: note that sales volume is an operating activity of a company Price-to-sales =Current share [...] MARKET RATIO:Price-to-book ratio One of the business ratio analysis which we often come across is the Price-to-book ratio. Append below in summary what is this market ratio is all about:- Ratio Price-to-book ratio (P/B ratio) Measures the value that the stock market places on a company relative to its book value. Frequently used by investors to find [...] One interesting liquidity ratio is the defensive interval which reflects theoretically how long the company can survive or defend itself in terms of its available cash plus cash equivalent ( most liquid cash) versus its daily cash operating requirement. Ratio Purpose Defensive ratio Used to indicate the number of days a [...] 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 issued [...] |
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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