Negative P/E Ratio
Price-Earnings Ratio (P/E Ratio) Before taking the discussion to Negative P/E Ratio, let’s understand the concept of Price-Earnings Ratio or P/E ratio. It expresses the relationship between the price …
Advantages and Disadvantages of Drawing Power
What is Drawing Power? Drawing power is a concept that is used in conjunction with cash credit and overdraft. Banks allow a sanction limit while extending cash credit and …
Advantages and Disadvantages of Packing Credit
Decoding Packing Credit Packing credit is a financial arrangement between an exporter and financial institution. It may be pre-shipment credit or post-shipment credit or both. Pre-shipment credit, as the …
Advantages and Disadvantages of Bank Guarantee
Understanding Bank Guarantee Bank guarantee is a written instrument issued by lending institutions to the beneficiary (to whom the guarantee is provided, generally seller) on behalf of the applicant …
Advantages and Disadvantages of Factoring
What is Factoring? Factoring is a financial arrangement which involves sale of accounts receivable of a business to another party (called ‘factor’) at a discount. It facilitates the seller …
Financial Statement Notes
Financial Statement Notes / Footnotes Financial statement notes are the additional important information apart from the basic 3 financial statements. These notes to financial statements give due clarity to …
Advantages and Disadvantages of Cash Credit
Cash credit is a short-term lending facility offered by banks against collateral security which allows borrowers to withdraw funds in excess of their credit balance. What is Cash Credit? …
Types of Financial Statements
There are 3 basic types of financial statements. We are categorizing another 2 important parts of an annual report as financial statements. Let’s begin our discussion with a small …
Factors Affecting Cost of Capital
Cost of capital is the cost for a business but return for an investor. There are various factors that can affect the cost of capital. Broadly, factors can be …
Cost of Capital
Define Cost of Capital What is a cost of capital? Cost of capital of an investor, in financial management, is equal to return, an investor can fetch from the …