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Ratio Analysis, an important tool for measuring financial health of the organizations. Ratio Analysis are concerned for investing firms into other organizations. Investing firms when want to invest in different firms / companies they want to know financial position of the firm / company. Investing Firms / Companies want to know, what is ability of firm to pay its outstanding, how firm meets  expenses, how efficiently use its assets and how much have a capability to pay their outstanding. For finding their answers, following ratios help them to find our their answers. Financial ratios are traditionally grouped into the following categories: Short-term solvency, or liquidity, ratios Ability to pay bills in the short-run Long-term solvency, or financial leverage, ratios Ability to meet long-term obligations Asset management, or turnover, ratios Intensity and efficiency of asset use Profitability ratios Ability to control expenses Market value ratios Going beyond financial statement...

FINANCIAL STATEMENTS Corporation or a Company, Firm use usually Four of Financial Statements                      i.             Balance Sheet                    ii.             Income Statement                   iii.             Statement of Cash Flows                  iv.             Statement of Owners Equity Balance Sheet ( (بیلنس شیٹ The balance sheet presents a company's financial position at the ...

Working capital  is  money  available to a company for day-to-day operations. Working capital measures a company's  liquidity , efficiency, and overall health. Because it includes  cash ,  inventory ,  accounts receivable ,  accounts payable , the portion of  debt  due within one  year , and other short-term accounts, a company's working capital reflects the results of a host of company activities, including  inventory management , debt management, revenue collection, and payments to suppliers. Working Capital Formula You can calculate the working capital of an organization by using the following formula: Working Capital =   Current Assets  -  Current Liabilities Example for Working Capital Working Capital =   Current Assets -  Current Liabilities Working Capital = $160,000 - $65,000 = $95,000 In this example, we see that the company's working capital is $95,...

Financial Markets: A financial market is a market in which people trade financial securities . Securities include stocks and bonds , and precious metals and currencies. فنانشل مارکیٹ وہ   جگہ ہے جہاں پر سرمایہ دار   فنانشل سیکورٹیز کا لین دین کرتے ہیں ۔ ان فنا نشل سیکورٹیز میں سٹاک، بانڈز اور دیگر قیمتی دھاتیں شامل ہیں ۔ یہ مارکیٹ stock exchanges   ہو سکتی ہیں ۔ Types of Financial Markets Primary Markets : The primary market is the part of the capital market that deals with the issuance and sale of equity-backed securities to investors directly by the issuer. Investor buy securities that were never traded before. Primary markets create long term instruments through which corporate entities raise funds from the capital market. یہ بنیادی اور پہلی مارکیٹ ہے جہاں نئی   جاری کردہ سیکورٹیز مثلاَ سٹاک، بانڈز ، کرنسی کار لین دین ہوتا ہے۔   مثال کے طور پر فرم A کیش اکٹھا کرنے کے لیے اپنے shares اسٹاک مارکیٹ میں فروخت کرتی ہے تو یہ primary market  ...