What is Ratio Analysis : Ratio analysis is the method or process by which the relationship of items or groups of items in the financial statements are computed, determined and presented. Ratio analysis is an attempt to derive quantitative measures or guides concerning the financial health and profitability of the business enterprise. Ratio analysis can…

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What is Cash Budget and its Purpose,Objectives and Need : The net cash position of a firm as it moves from one budgeting sub period to another is highlighted by the cash budget. Cash budget is a statement showing the estimated cash inflows and cash outflows over the planning horizon. The various purpose of cash…

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The portfolio expected return is a straightforward weighted average of returns on the individual securities; the portfolio standard deviation is not the weighted average of individual security standard deviations. We should not ignore the relationship or correlation between the returns of two different securities in Portfolio. This correlation however has no impact on the portfolios…

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What is a capital structure? Capital means funds employed in business for a period of twelve months and above. Capital excludes short-term funds employed in funds, i.e., working capital. Working capital is employed for a short time and hence ignored. Capital structure gives us the various components of capital both debt capital and share capital.…

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