Market Outbox

Joint stock companies need to source their funding requirements from public at large and various funding institutions. While the capital and other reserves cannot be increased at short term intervals raising funds through debentures, both convertible and non-convertible, and warrants are resorted to. Non-Convertible debentures are like loans which carry higher rates of interest and [...]

Various ratios are calculated to analyze the strength and weakness of a balance sheet of a company. The purpose of analyzing a balance sheet by investors is to make sure their investments in the company either by participating in the equity issue or by subscribing to the bonds yield them a nominal return in the [...]

Every company in the course of its day to day business transactions need to pay some of the expenses by way of advance even before the service is rendered to the company. So also some services require annual payments to be made and the total amount paid is written down during each month while arriving [...]

Calculating earnings and the evaluation of earnings power are two important aspects of balance sheet analysis carried out by an investor. While book value or liquidating value is important in security analysis the earnings power indicates the attractiveness or success of an investment. Therefore earning power is used to mean the earnings that are reasonably [...]