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Debt to Equity Ratio
 
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This video demonstrates how to calculate the Debt to Equity Ratio. An example is provided to illustrate how the Debt to Equity Ratio can be used to compare the leverage of two firms. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 25311 Edspira
Debt To Equity Ratio - Explained in Hindi
 
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Debt to Equity Ratio is explained in Hindi. Debt Equity Ratio is an important Leverage Ratio or Solvency Ratio that tells us about the debt position of a company. In this video, we will learn about debt to equity ratio formula, & calculation with an example. Related Videos: Debt Ratio (Debt to Asset Ratio) - https://youtu.be/rKqcT0giY_A Debt To Capital Ratio - https://youtu.be/BhfNAnkI5iY Interest Coverage Ratio - https://youtu.be/6lLYAlPDISE Debt Service Coverage Ratio (DSCR) - https://youtu.be/ATKMbu_7q6M Capital Gearing Ratio - https://youtu.be/V8kgmYdNgCg Liquidity Ratios & Solvency Ratios - https://youtu.be/ZMSW9BYb_Yo डेब्ट टू इक्विटी रेश्यो को हिंदी में एक्सप्लेन किया गया है। डेब्ट टू इक्विटी रेश्यो एक बहुत ही महत्वपूर्ण लिवरेज रेश्यो या सॉल्वेंसी रेश्यो है जो हमे बताता है की हमे कंपनी की डेब्ट की स्थिति के बारे में बताता है। इस वीडियो में हम डेब्ट टू इक्विटी रेश्यो के फार्मूला और कैलकुलेशन के बारे में डिटेल्ड में उदाहरण के साथ सीखेंगे। Share this Video: https://youtu.be/1_tsp82y9-c Subscribe To Our Channel and Get More Property, Real Estate and Finance Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g If you want to become an Expert Real Estate investor, please visit our website https://assetyogi.com now and Subscribe to our newsletter. In this video, we have explained: What is debt to equity ratio? What is the meaning of liquidity and solvency of company? How to calculate and interpret the debt to equity ratio? How to use debt to equity ratio formula and calculation to analyze the solvency of a company? What is the ideal D/E ratio for any company? How does low debt to equity ratio affect the chance of survival of a business during bad market situations? What is the best practice while comparing companies using the debt to equity ratio? Where to look online for the financials of different companies for solvency ratio calculation? Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Facebook – https://www.facebook.com/assetyogi Linkedin - http://www.linkedin.com/company/asset-yogi Twitter - http://twitter.com/assetyogi Instagram - http://instagram.com/assetyogi Google Plus – https://plus.google.com/+assetyogi-ay Pinterest - http://pinterest.com/assetyogi/ Hope you liked this video in Hindi on “Debt To Equity Ratio”.
Views: 13789 Asset Yogi
The Debt to Equity Ratio
 
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Subscribe to Alanis Business Academy on YouTube for updates on the latest videos: https://www.youtube.com/alanisbusinessacademy?sub_confirmation=1 Go Premium for only $9.99 a year and access exclusive ad-free videos from Alanis Business Academy: http://bit.ly/1Iervwb View additional videos from Alanis Business Academy and interact with us on our social media pages: YouTube Channel: http://bit.ly/1kkvZoO Website: http://bit.ly/1ccT2QA Facebook: http://on.fb.me/1cpuBhW Twitter: http://bit.ly/1bY2WFA Google+: http://bit.ly/1kX7s6P As a type of leverage ratio, the Debt to Equity Ratio measures the degree to which a firm is finalized through debt. Although debt can be utilized effectively, too much debt increases a firm's fixed costs and can negatively affect its cash flow. Furthermore, as debt loads increase the firm may incur increased financing costs due to the risk associated with carrying a higher amount of debt. In this video you'll learn how to calculate the Debt to Equity Ratio as learn as how to conduct some basic financial analysis using the metric. Photo by Rick Tap: https://unsplash.com/@ricktap
What is EQUITY RATIO? What does EQUITY RATIO mean? EQUITY RATIO meaning, definition & explanation
 
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What is EQUITY RATIO? What does EQUITY RATIO mean? EQUITY RATIO meaning - EQUITY RATIO definition - EQUITY RATIO explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. The equity ratio is a financial ratio indicating the relative proportion of equity used to finance a company's assets. The two components are often taken from the firm's balance sheet or statement of financial position (so-called book value), but the ratio may also be calculated using market values for both, if the company's equities are publicly traded. The equity ratio is a very common financial ratio, especially in Central Europe, while in the US the debt to equity ratio is more often used in financial (research) reports. The formula for calculating D/E ratios can be represented in the following way: Debt - Equity Ratio = Total Liabilities / Shareholders' Equity The result may often be expressed as a number or as a percentage. This form of D/E may often be referred to as risk or gearing. The Equity Ratio is a good indicator of the level of leverage used by a company. The Equity Ratio measures the proportion of the total assets that are financed by stockholders, as opposed to creditors. A low equity ratio will produce good results for stockholders as long as the company earns a rate of return on assets that is greater than the interest rate paid to creditors.
Views: 1676 The Audiopedia
Debt Ratio (Debt to Asset Ratio) - Explained in Hindi
 
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Debt Ratio or Debt To Asset Ratio is explained in hindi. Debt Ratio is an important Leverage Ratio or Solvency Ratio that tells us about the level of debt used in financing the assets of a company. In this video, we will learn about debt to asset ratio formula, & calculation with an example. Related Videos: Debt To Equity Ratio - https://youtu.be/1_tsp82y9-c Debt To Capital Ratio - https://youtu.be/BhfNAnkI5iY Liquidity Ratios & Solvency Ratios - https://youtu.be/ZMSW9BYb_Yo Interest Coverage Ratio - https://youtu.be/6lLYAlPDISE Debt Service Coverage Ratio (DSCR) - https://youtu.be/ATKMbu_7q6M Capital Gearing Ratio - https://youtu.be/V8kgmYdNgCg डेब्ट रेश्यो या डेब्ट टू एसेट रेश्यो को इस वीडियो में हिंदी में समझाया गया है। डेब्ट रेश्यो एक बहुत ही महत्वपूर्ण लिवरेज रेश्यो या सॉल्वेंसी रेश्यो है जो हमे बताता है की किसी कंपनी के एसेट्स को फाइनेंस करने के लिए कितने प्रतिशत ऋण का उपयोग किया गया है। इस वीडियो में हम डेब्ट टू एसेट रेश्यो के फार्मूला और कैलकुलेशन को उदाहरण के साथ समझेंगे। Share this Video: https://youtu.be/rKqcT0giY_A Subscribe To Our Channel and Get More Property, Real Estate and Finance Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g If you want to become an Expert Real Estate investor, please visit our website https://assetyogi.com now and Subscribe to our newsletter. In this video, we have explained: What is the debt ratio or debt to asset ratio? What is the calculation formula of debt to asset ratio? How to use debt ratio formula to estimate business risk? What is the ideal debt to asset ratio for a company? How to interpret the results of the debt ratio calculation? Debt to asset ratio helps us to understand what percentage of total assets are financed using loans. This calculation also helps us to analyze the financial risks of the company. The higher the ratio is the higher the insolvency risk of the company will be. Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Facebook – https://www.facebook.com/assetyogi Linkedin - http://www.linkedin.com/company/asset-yogi Twitter - http://twitter.com/assetyogi Instagram - http://instagram.com/assetyogi Google Plus – https://plus.google.com/+assetyogi-ay Pinterest - http://pinterest.com/assetyogi/ Hope you liked this video in Hindi on “Debt to Asset Ratio”.
Views: 6234 Asset Yogi
Key Financial Metrics and Ratios: ROA, ROE, and ROIC
 
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Learn key financial metrics & ratios to analyze companies financial statements. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" You’ll learn about the key metrics and ratios used to analyze companies’ financial statements, including Return on Equity (ROE), Return on Assets (ROA), and Return on Invested Capital (ROIC), as well as Inventory Turnover, Receivables Turnover, Payables Turnover, the Current Ratio, and the Asset Turnover Ratio. Table of Contents: 1:15 Why Metrics and Ratios Matter 4:58 Return on Equity (ROE), Return on Assets (ROA), and Return on Invested Capital (ROIC) 10:50 Asset-Based and Turnover-Based Ratios 14:40 Interpretation of Key Metrics and Ratios for Wal-Mart, Amazon, and Salesforce 19:32 Why the Key Metrics and Ratios Are Sometimes Not That Useful Why Metrics and Ratios? They let you evaluate and compare different companies, and see why one company might be worth more (higher valuation multiple) than others. They let you answer questions such as: How much equity is required to generate a certain amount of after-tax profit (Net Income)? How much in assets is required to generate a certain amount of after-tax profit (Net Income)? How much total capital is required to do this? How dependent is a company on its assets? How liquid is the company? Can it meet its obligations? How quickly does it sell all its Inventory, pay its outstanding invoices, and collect its receivables? ROA, ROA, and ROIC Return on Equity (ROE) = Net Income / Average Shareholders’ Equity Return on Assets (ROA) = Net Income / Average Assets Return on Invested Capital (ROIC) = NOPAT / (Total Debt + Equity + Other Long-Term Funding Sources) Return on Equity (ROE): How efficiently is a company using its equity to generate after-tax profits? Return on Assets (ROA): How well is a company using its assets / how dependent is it on them? Return on Invested Capital (ROIC): How well is a company using ALL its capital, or how much capital is required to grow its business? Here, Wal-Mart easily ranks #1 in all these metrics because it has a very high ROE of 20-25%, an ROA of close to 10%, and an ROIC of 13-14%; for Amazon and Salesforce, these numbers are negative or close to 0%. Asset-Based Ratios and Turnover-Based Ratios Asset Turnover Ratio = Revenue / Average Assets How dependent is a company on its asset base to generate revenue? Current Ratio = Current Assets / Current Liabilities How liquid is a company? Can it use its short-term assets to repay its short-term obligations, if required? Inventory Turnover = COGS / Average Inventory How many times per year does a company sell off all its Inventory? Receivables Turnover = Revenue / Average AR How quickly does a company collect its receivables from customers that haven’t paid in cash yet? Payables Turnover = COGS / Average AP (*) How quickly does a company submit cash payment for outstanding invoices? Interpretation of Figures for Wal-Mart, Amazon, and Salesforce On the surface, many of these metrics make Wal-Mart seem like a "better" company - much higher ROE, ROA, and ROIC, and Amazon is negative on some of those! Wal-Mart tends to have higher margins as well, and shows more consistency with those margins. Similar inventory management, but Wal-Mart collects from customers and pays invoices much more quickly than Amazon. Wal-Mart is levered a bit more heavily, though. And yet… Amazon is a much more expensive stock, or at least it was at this point in time, and the market values it much more highly based on metrics such as the P / E ratio. At the time of this analysis, Wal-Mart P / E Ratio = 16x, and Amazon P / E Ratio = 456x! How could that be possible? Is Amazon really nearly 30x as valuable as Wal-Mart with WORSE metrics? Answer: The "Revenue Growth" line tells the whole story here. You're comparing 2 very different companies – one is a mature, predictable, mostly slow-growing firm, and one is growing revenue at 20-30% per year, despite revenue in the tens of billions already. Admittedly, Amazon's valuation still seems ridiculous, but it's not that surprising it's valued more highly than Wal-Mart, given that it's growing 20-30x more quickly. The Bottom-Line: These metrics are MOST useful when comparing companies of similar sizes, growth rates, and margins – not as useful when you're comparing a high-growth company to a stable, mature firm. RESOURCES http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Key-Financial-Metrics-Ratios.xlsx http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Key-Financial-Metrics-Ratios.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Amazon-Financial-Statements.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Salesforce-Financial-Statements.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Walmart-Financial-Statements.pdf
DuPont analysis explained
 
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DuPont equation tutorial. ROE: Return On Equity. ROA: Return On Assets. ROS: Return On Sales. This video takes you through the financial ratios of the ROE formula, the ROA formula, the ROS formula, asset turnover and leverage, and shows how they fit together. The very basics and the very essence of financial ratio analysis! ROE or Return On Equity is defined as Net Income divided by Equity. In other words, the net profit that a company has generated during a year, divided by the book value of the shareholder capital invested in the company. ROE is a measure of the rate of return to shareholders. The 3-part version of the DuPont analysis shows you that ROE = ROS x asset turnover x leverage. The first two elements together, ROS multiplied by Asset Turnover, form ROA, Return On Assets. This ratio of ROA has many variations, some companies measure ROIC Return On Invested Capital, ROTC Return On Total Capital, ROCE Return On Capital Employed, or RONOA Return On Net Operating Assets. These are all variations on the same theme, you look at the returns (profit) generated during a period, and compared them to the capital invested in the company to generate those returns. ROA is an indicator of business success, influenced by two factors: ROS or margin performance, and asset turnover which you could call speed or velocity. ROS or Return On Sales, is Net Income divided by Sales, which is an indicator of the relative profitability or operating efficiency: how many cents of profit are generated for every dollar of sales? Asset Turnover is calculated as Sales divided by Assets, a measure of asset use efficiency. The last element of the DuPont 3-part equation is leverage, Assets divided by Equity. You can expand the DuPont formula to 5 steps, if you want even more analytical insight into the drivers of where your ROE increase or decrease is coming from. The two elements on the right stay the same: asset turnover and leverage. However, ROS gets split into three elements: Net Income divided by Earnings Before Tax, which is called tax burden, Earnings Before Tax divided by EBIT, called interest burden, and EBIT divided by sales, which is EBIT%. In a lot of companies, improving the EBIT% and increasing the Asset Turnover, are important targets for the management team, whereas the other elements are for the finance, treasury and tax departments to manage. For an illustration of Return On Assets, my follow-up video analyzing ROA, ROS and asset turnover of Verizon and Walmart is highly recommended https://www.youtube.com/watch?v=2j8bfR8KqJ0 Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
18. Warren Buffett's 1st Rule - What is the Current Ratio and the Debt to Equity Ratio
 
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Download Preston's 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location: http://www.amazon.com/gp/product/0982967624/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0982967624&linkCode=as2&tag=pypull-20&linkId=EOHYVY7DPUCW3WD4 http://www.amazon.com/gp/product/1939370159/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1939370159&linkCode=as2&tag=pypull-20&linkId=XRE5CA2QJ3I2OWSW In this lesson, students learned the importance of investing in vigilant leaders. A vigilant leader is a manager that won't put your business in dangerous situations. Business are just like people you know. You probably have friends that take enormous financial risks and as a result find themselves in a lot of debt. Business are no different. Right now, there a businesses around the world that manage their debt very poorly. The best way to identify these types of businesses is through the two tools you learned in this lesson; the Debt to Equity Ratio and the Current Ratio. The Debt to Equity ratio is found on the balance sheet. To calculate the number, simply divided the total debt by the equity and it will give you the ratio. This ratio is very important because it shows a potential owner (or shareholder) how much leverage a company has on it's business. The lower the ratio is, the better for you as an owner. When Warren Buffett invests in stocks, he typically likes to find debt to equity ratios that are lower than (0.50). Depending on the specific sector, his tolerance for debt to equity may increase, but generally speaking this is the ratio he uses. The Current ratio is also found on the balance sheet. To calculate the number, simply divided the current assets by the current liabilities. The Current assets are the cash or other assets the company will likely convert to cash during the next 12 months. Likewise, the current liabilities are the debts that the company must pay in the next 12 months. By comparing these two figures, a potential owner gets a great idea if the company will need to incur debt within the next 12 months. If the current ratio is a 1.0, that means the company's current assets and liabilities are equal. A number lower than 1.0 is bad and it means the company will most likely incur debt within the next 12 months. A number above 1.0 means the company's assets will exceed the liabilities. This is a good thing and what you want to find in a business. When Warren Buffett looks for a company to buy, he always tries to find a company with a current ratio above 1.5.
Views: 223030 Preston Pysh
ratio analysis of financial statements in hindi| liquidity ratios| solvency ratios| leverage ratio
 
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In this video we have discussed ratio analysis of financial statements in hindi.We have discussed the categorization of different ratios and their types such as liquidity ratio : Current ratio and quick ratio, leverage ratio, debt equity ratio, debt service coverage ratio, return on capital employed roce, return on assets, return on equity etc. If Found our video helpful to you anyway, Then don't forget to like the video. Kindly Subscribe our channel for to get the notification for our latest videos Subscribe Link : https://goo.gl/M51wPX -----Like ------ Share -------- Comment ------- Subscribe -------------------------- Follow us on Facebook : https://www.facebook.com/bankingsutra/ Follow us on Twitter : https://twitter.com/banking_sutra Follow us on Google plus : https://plus.google.com/108611863544253921936 Follow us on Whatsapp : +918336937153
Views: 55047 BANKING SUTRA
Ratio Analysis - Gearing
 
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This revision video explains the concept of gearing and illustrates how the main gearing ratios are calculated and interpreted.
Views: 63110 tutor2u
Financial Statement Analysis #3: Long Term Solvency Measures or Leverage Ratios
 
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http://www.subjectmoney.com http://www.subjectmoney.com/articledisplay.php?title=Financial%20Statement%20Analysis%20and%20Ratios In this financial statement analysis tutorial we cover long-term solvency measure also known as leverage ratios. In this tutorial we cover the total debt ratio, the debt to equity ratio, the equity multiplier the TIE ratio and the cash coverage ratio. Please don't forget to subscribe, rate, & share our videos. Please also visit our websites http://www.subjectmoney.com & http://www.excelfornoobs.com https://www.youtube.com/user/Subjectmoney https://www.youtube.com/watch?v=qg1N9_CQtyk
Views: 41910 Subjectmoney
Understanding Debt to Equity Ratio
 
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http://www.MDTSeminar.com Entrepreneurs seek capital and lines of credit to fund their new or existing business. However, many business owners are unaware of how their current debt to equity ratio adversely influences their chances for securing funding. A debt to equity ratio is a debt ratio used to measure a company's financial leverage, calculated by dividing a company’s total liabilities by its stockholders' equity. The D/E ratio indicates how much debt a company is using to finance its assets relative to the amount of equity. The formula for calculating D/E ratios can be represented in the following way: Debt - Equity Ratio = Total Liabilities / Shareholders' Equity The result may often be expressed as a number or as a percentage. This form of D/E may often be referred to as risk or gearing. This ratio can be applied to personal financial statements as well as corporate ones, in which case it is also known as the Personal Debt/Equity Ratio. Here, “equity” refers not to the value of stakeholders’ shares but rather to the difference between the total value of a corporation or individual’s assets and that corporation or individual’s liabilities. The formula for this form of the D/E ratio, then, can be represented as: D/E = Total Liabilities / (Total Assets - Total Liabilities) Please enjoy this great video produced by Investopedia
Ratios to Know - Debt to Asset
 
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Part #3 in the series titled, "Ratios to Know." These casts are designed to help small business oeprators to better understand the financial statements provided by their accountant. This cast considers the Debt to Assets Ratio; an indicator of how highly leveraged a business is.
Views: 14469 Lewis Accountants
ROE Ratio in 16 min. - How to Calculate Return on Equity Ratio Financial Ratio Analysis Tutorial
 
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Clicked here http://www.MBAbullshit.com/ and OMG wow! I'm SHOCKED how easy.. No wonder others goin crazy sharing this??? Share it with your other friends too! Fun MBAbullshit.com is filled with easy quick video tutorial reviews on topics for MBA, BBA, and business college students on lots of topics from Finance or Financial Management, Quantitative Analysis, Managerial Economics, Strategic Management, Accounting, and many others. Cut through the bullshit to understand MBA!(Coming soon!) ROE Ratio in 16 min. - Return on Equity Financial Ratio Analysis Tutorial http://www.youtube.com/watch?v=Th3IVHu3eVI
Views: 50485 MBAbullshitDotCom
Return On Assets explained
 
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How to calculate ROA? What does ROA mean? Return On Assets or ROA is a financial ratio that can help you analyze the performance of a company or business unit and compare the financial performance to others. This video takes you through the Return On Assets formula, shows you how to calculate ROA, how to interpret ROA, and gives suggestions on how to improve ROA. Return On Assets links together information from two of the three main financial statements, by taking the bottom line of net profit from the income statement and the left hand side of assets from the balance sheet. ROA or Return On Assets is defined as Net Income divided by Assets. In other words, the net profit that a company has generated during a year, divided by the book value of the assets that a company owns on the balance sheet date. ROA is an important indicator of business success. Can the company generate a good return on the assets it has invested in? If you want to improve the ROA performance of the company, you can either work on increasing the numerator of profitability, or reducing the amount in the denominator of assets. Profit can be increased by selling more units, charging a higher selling price, improving the product or service mix, realizing productivity and efficiency, achieving sourcing benefits, or reducing the interest or tax charges. Assets can be reduced by shorter credit terms to customers and improved receivables collections, increasing inventory turns, making selective lease versus buy decisions, improving the asset utilization of property, plant and equipment, or divesting lower margin business units or product lines. Here’s another way to look at the drivers of Return On Assets performance. ROA is influenced by two factors: ROS or margin performance, and asset turnover which you could call speed or velocity. Do you want your company to perform better on ROA? Dedicate resources to improving margins, as well as to improving speed. If you want to know more about the context of how ROA Return On Assets fits into financial ratio analysis, then please watch my video on DuPont analysis at https://www.youtube.com/watch?v=bhbDDSohJ84 Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Debt to Equity Ratio
 
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Presenter: Nikhil The Debt to Equity Ratio is an important metric that value investors use to calculate the total liabilities of a company to shareholder's equity. This number is used to determine if it is a good idea to invest in a certain company depending on their debt to equity ratio. You must remember to take in consideration the type of business a company does because that ultimately reflects the outcome of the figure. A quote by Charles H. Brandes is used to support the facts, and an example is provided to help understand the debt to equity ratio in practice. Don't forget to Like, Comment and Subscribe!! Ending beat by Lynval D'tchalis, check him out here: https://soundcloud.com/lynval-sundayswag-dtchalis Follow us @MrSoniBros and @MrNikkyG
Views: 74635 Soni Bros
#3 Ratio Analysis [Solvency Ratios] ~ Concept behind formation of a Formula
 
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Described the concept, reason and logic behind formation of different formulas of analysis of financial statements. I have discussed the core concept of contents used in the following formulas: 1. Debt Equity Ratio 2. Total Assets to Debt Ratio 3. Proprietary Ratio 4. Interest Coverage Ratio (not relevant for Class 12) 5. Debt Service Ratio (not relevant for Class 12) 6. Capital Gearing Ratio (not relevant for Class 12) 🔴 Download Notes: https://drive.google.com/drive/folders/0BzfDYffb228JNW9WdVJyQlQ2eHc?usp=sharing 🔴 Connect on Facebook : https://www.facebook.com/ca.naresh.aggarwal 🔴 Connect with Google+: https://plus.google.com/u/0/+CANareshAggarwal
Views: 51241 CA. Naresh Aggarwal
What Is a Leverage Ratio?
 
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The leverage ratio is the ratio of debt to equity in a company, bank, house, etc. --------------------------------------------------------------- Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Dictionary of Economics Course: http://bit.ly/2HGIRFw Additional practice questions: http://bit.ly/2Jv11jo Ask a question about the video: http://bit.ly/2sRlDHX Help translate this video: http://bit.ly/2MhDnV3
Return On Equity explained
 
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What is Return On Equity? Return On Equity or ROE is a financial ratio that can help you analyze the performance of a company or business unit from the perspective of the shareholder, and compare the financial performance to others. This video takes you through the Return On Equity formula, shows you how to calculate ROE, how to interpret ROE, and gives suggestions on how to improve Return On Equity. Return On Equity links together information from two of the three main financial statements, by taking the bottom line of net profit from the income statement and the equity or shareholder capital amount out of the right hand side of the balance sheet. ROE or Return On Equity is defined as Net Income divided by Equity. In other words, the net profit that a company has generated during a year, divided by the book value of the shareholder capital that a company owes on the balance sheet date. ROE is an important indicator of attractiveness of a business to shareholders. Can the company generate a good return on the equity that investors have invested in it? Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better stock market investment decisions. Philip delivers training in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Return on Equity (ROE) - Explained in Hindi
 
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Return on Equity is explained in hindi. ROE is a profitability financial ratio that gives the return on investment for shareholders. In next video we will learn about ROCE i.e. Return on Capital Employed that gives overall returns on the capital in the business. Related Videos: Financial Ratios & Analysis: https://youtu.be/CZscpOND3Vs Profitability Ratios: https://youtu.be/pHgiuO2ZYoU Return on Investment (ROI): https://youtu.be/ij7y5e2MVG4 ROCE (Return on Capital Employed): https://youtu.be/FjWuma0U2x0 Return on Assets: https://youtu.be/7z9jDKNub6U रिटर्न ऑन इक्विटी को इस वीडियो में हिंदी में एक्सप्लेन किया गया है। ROE एक प्रोफिटेबिलिटी फाइनेंसियल रेश्यो है जो शेयर होल्डर्स के लिए निवेश पर रिटर्न देता है। अगले वीडियो में हम ROCE यानिकि रिटर्न ऑन कैपिटल एम्प्लॉयड के बारे में जानेंगे जो की बिज़नेस के कैपिटल पर ओवरऑल रिटर्न देता है। Share this Video: https://youtu.be/K-OhdUGqdzc Subscribe To Our Channel and Get More Property, Real Estate and Finance Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g If you want to become an Expert Real Estate investor, please visit our website https://assetyogi.com now and Subscribe to our newsletter. In this video, we have explained: What is a return on equity or ROE? How many types of ROE is there? How to calculate returns using return on equity formula? What are the limitations of return on equity calculation? What is the common equity? What is the meaning of preferred equity? Which profitability ratio is used to calculate the return on investment for shareholders? How to calculate the return on common equity? What happens when the company increases debt & decreases the equity portion? In the video, you will also see how you can check the financials of different companies online & calculate the return on equity. Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Instagram - http://instagram.com/assetyogi Google Plus – https://plus.google.com/+assetyogi-ay Facebook – https://www.facebook.com/assetyogi Linkedin - http://www.linkedin.com/company/asset-yogi Twitter - http://twitter.com/assetyogi Pinterest - http://pinterest.com/assetyogi/ Hope you liked this video in Hindi on “Return on Equity (ROE)”.
Views: 14151 Asset Yogi
Balance Sheet Analysis | Financial Ratio Analysis - Accounting Finance for Banking | AFB
 
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Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick indication of a firm's financial performance in several key areas. The ratios are categorized as Short-term Solvency Ratios, Debt Management Ratios, Asset Management Ratios, Profitability Ratios, and Market Value Ratios. For Previous Year Ques of JAIIB/CAIIB, Mock Tests Full Course Videos in Hindi Visit https://iibf.info Also Explained through this Video: 1) Assets 2) Liabilities 3)Fixed Assets, Current Assets, Intangible Assets, Current Assets, Quick Assets 4) Current Ratio 5) Quick Ratio or Acid Test Ratio or Liquidity Ratio 6) Debtor Turnover Ratio 7) Debtor Velocity 8) Stock Turnover Ratio 9) Debt Equity Ratio 10) Net worth 11)Tangible Net worth and Intangible
Views: 11549 Learning sessions
The Return on Equity Ratio
 
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Subscribe to Alanis Business Academy on YouTube for updates on the latest videos: https://www.youtube.com/alanisbusinessacademy?sub_confirmation=1 Go Premium for only $9.99 a year and access exclusive ad-free videos from Alanis Business Academy: http://bit.ly/1Iervwb View additional videos from Alanis Business Academy and interact with us on our social media pages: YouTube Channel: http://bit.ly/1kkvZoO Website: http://bit.ly/1ccT2QA Facebook: http://on.fb.me/1cpuBhW Twitter: http://bit.ly/1bY2WFA Google+: http://bit.ly/1kX7s6P Return on equity is a type of profitability ratio that measures how successful a firm is at using its investments to generate profit. Using the return on equity formula, investors can determine how much profit they're receiving for each dollar in equity investment. Not only does this financial ratio allow investors to determine if their making a good investment, but it also allows them to compare the company's performance to that of other firms. Learn more about return on equity or ROE in the latest lecture from Alanis Business Academy. __________ Photo by Rick Tap: https://unsplash.com/@ricktap
5. Debt to Equity Ratio
 
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Elearnmarkets.com explains debt to equity ratio which is an important parameter while deciding to invest in a stock. Debt/Equity Ratio is a debt ratio used to measure a company's financial leverage, calculated by dividing a company's total liabilities by its stockholders' equity. The D/E ratio indicates how much debt a company is using to finance its assets relative to the amount of value represented in shareholders' equity.
Views: 985 Elearnmarkets.com
Return on Equity Ratio (ROE Formula, Examples) | Calculate Return on Equity
 
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In this video, I discuss what is ROE i.e. Return on Equity in detail. Here we look at ROE formula, calculations along with top return on equity examples. Return on Equity is a profitability ratio for shareholders. It provides how much returns the company has generated per unit of their shareholder's equity. You can calculate Return on equity using the two set of ROE formulas 1) Return on Equity Formula = Net Income / Total Equity 2) DuPont ROE Formula = (Net Income / Net Sales) x ( Net Sales / Total Assets) x Total Assets / Total Equity or DuPont Return on Equity Formula = Profit Margin * Total Asset Turnover * Equity Multiplier Also, In this video, we calculate return on equity by taking Nestle's example. For more, You can visit detailed note on Return on Equity or ROE in the link below - https://www.wallstreetmojo.com/return-on-equity-roe-dupont-roe/
Views: 356 WallStreetMojo
ACCOUNTING RATIOS PART - 3 || SOLVENCY RATIO - DEBT EQUITY RATIO & TOTAL ASSET TO DEBT RATIO
 
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ACCOUNTING RATIOS PART - 3 || SOLVENCY RATIO - DEBT EQUITY RATIO & TOTAL ASSET TO DEBT RATIO
Views: 228 waves academy
Profitability Ratio Analysis: Financial Ratio Analysis Explained
 
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Profitability Ratio Analysis: Financial Ratio Analysis Explained Support AccoFina's Patreon if you are a Fan or Believer in my work, https://patreon.com/accofina Time Markers: 1) The Profit Margin 1:17 2) The Gross Profit Margin 5:47 3) The Return on Assets 14:28 4) The Return on Equity 21:47 5) Different ways to conduct ratio analysis 27:56 6) Key ideas with all ratio analysis 29:06 1) THE PROFIT MARGIN Tells us how much profit is generated from sales. Percentage of sales revenue that ends up as profit Good indicator of cost control and/or pricing power. Profit Margin Formula: Profit Margin = Net Income / Sales Revenue Example Where do we find the Required Inputs? Net Income: From the Income Statement Sales Revenue: From the Income Statement How to Interpret Changes in the Ratio: Expenses have changed in relation to sales... * Management is effective with cost control * Economies of scale are being utilised. Sales Revenue has changed in relation to expenses... * Change in pricing power (bargaining position with consumers) * Change in state of the economy and aggregate demand 2) THE GROSS PROFIT MARGIN (Very important for resellers and manufacturers) Profit between cost of inventory and sales price. How much sales revenue left to cover profit and all other expenses. Gross Profit Margin Formula: Gross Profit Margin = (Sales Revenue - Cost of Goods Sold) / Sales Revenue Where do we find the Required Inputs? Sales Revenue: From the Income Statement Cost of Goods Sold: From the Income Statement How to Interpret Changes in the Ratio: Sales Revenue has changed in relation to cost of goods sold... * Change in pricing power (bargaining position with consumers) * Change in product or aggregate demand (without a flow through the supply chain yet) * Market competitive position and pressures Cost of Goods Sold has changed in relation to sales revenue... * Power within the supply chain * Change in supplier or production efficiency Changes in prices of particular commodity inputs 3) RETURN ON ASSETS Return generated by the assets for those who funded the assets. Insight into success of management in income generating asset allocation and utilisation. Return on Assets Formula: Return on Assets = (Income beforeTax + Interest Expense) / ((Assets at Start of Period + Assets at End of Period) / 2) Where do we find the Required Inputs? Income before Tax: From the Income Statement Interest Expense: From the Income Statement Assets at Start of Period: From the Previous Balance Sheet Assets at End of Period: From the Current Balance Sheet How to Interpret Changes in the Ratio: Profitability has changed in relation to the level of assets... * Management is getting ‘more from less’ in regards to assets * Management has made good asset allocation decisions in terms of revenue * Management has good control of costs in relation to expenses Previously mentioned reasons: e.g. economy, market power, competitive position Level of assets have changed in relation to profitability... * Assets may have suddenly increased through large, recent * CapEx Assets may not be being replaced or replenished at the same rate * Particular choice of depreciation/amortisation policies 4) RETURN ON EQUITY Return generated for the owners of the business, the common stockholders. Insight into success of any leverage used (when comparing to return on assets). Return on Equity Formula: Return on Equity = (Net Income - Preference Dividends) / ((Common Stockholder Equity at Start of Period + Common Stockholder Equity at End of Period) / 2) Where do we find the Required Inputs? Net Income: From the Income Statement Preference Dividends: From the Income Statement or Investor Relations Equity at Start of Period: From the Previous Balance Sheet Equity at End of Period: From the Current Balance Sheet How to Interpret Changes in the Ratio: Profitability has changed in relation to the level of common stockholder equity... * Management performance is changing in the eyes of, and on behalf of, the owners/employers * Previously mentioned reasons: e.g. economy, market power, competitive position, cost control, asset utilisation Common Stockholder Equity has changed in relation to profitability... * The level of liabilities have changed (and thus equity) * A stock issue or stock buyback (i.e. equity levels have changed) Subscribe to the Channel: https://goo.gl/84Sfeg Or just check out the Channel Page: https://goo.gl/yTj9Bs Most Popular YouTube Video: https://goo.gl/Jbv685 Latest YouTube Upload: https://goo.gl/wDM83Y 1) Website http://www.accofina.com 2) Amazon Author Page: http://www.amazon.com/author/axeltracy 3) Udemy Instructor Page https://www.udemy.com/u/axeltracy/ 4) Twitter http://www.twitter.com/accofina 5) Google+ http://plus.google.com/+accofina 6) Instagram https://www.instagram.com/axel_accofina/ 7) Facebook Page https://www.facebook.com/AccoFina.Page #Accounting #FinancialEducation #FundamentalAnalysis
Views: 52346 AccoFina
Financial Accounting: Debt to Equity Ratio
 
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Views: 4234 ProfAlldredge
#102, Class 12 accounts (Accounting ratios: Total assets to debt ratio)
 
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Class 12 Accounts Accounting ratios Total assets to debt ratio Accounts adda video 102 • Follow gaurav sir on instagram - @gauravjain3497 • Our books are now available on Amazon  Special Combo - Economics on your tips Micro + Macro- http://amzn.in/d/eSxj5Ui  Economics on your tips Macroeconomics - http://amzn.in/d/2AMX85O  Economics on your tips Microeconomics - http://amzn.in/d/cZykZVK • Official series of playlists  Class 12 Accounts complete course - https://www.youtube.com/playlist?list=PLfwl6GH_DzV4BtVbnkbp2f-cQxWmah237  Class 11 accounts complete course - https://www.youtube.com/playlist?list=PLfwl6GH_DzV7MzMAA4-FUA6kG7KADocfQ  Cash flow statement - https://www.youtube.com/playlist?list=PLfwl6GH_DzV7cFfh3DHoNgFG89im5hxL-  NPO – Not for Profit Organization - https://www.youtube.com/playlist?list=PLfwl6GH_DzV6JVytl_klyQrbQ6g8DL-x_ • Our other channels  mind your own business - https://www.youtube.com/channel/UC2JNrw4j7Eo4R5cZXXn8rNw  economics on your tips - https://www.youtube.com/channel/UCUpHeFrAvoqcdGgl_W83x6w • In order to promote us and help us grow - Paytm on – 7690041256 • For sending your wishes and greetings Address – Gaurav Jain ( 7690041256 ) Shop number 23 , Paliwal pipe fittings navjyoti road, Kaiserganj Ajmer ( Rajasthan ) Pincode - 305001 #accountsadda #class12 #gauravsir
Views: 31394 Accounts Adda
Financial Accounting: Debt Ratio
 
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Views: 13411 ProfAlldredge
ROE (Return On Equity) Explained
 
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What ROE means when evaluating a business and how to calculate ROE?
Views: 43962 KCLau Money
Long Term Solvency Ratio - Practical Problem Solution (Debt-equity, Solvency, Ratio etc.)
 
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It cover Debt-equity ratio, Solvency Ratio, Total asset ratio, Prop. Ratio And Interest Coverage Ratio. It also cover meaning of capital employed and shareholder's fund. Tabulation format to calculate EPS is also shown in it. Debt- equity Ratio (𝐸𝑥𝑡𝑒𝑟𝑛𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑡𝑖𝑒𝑠)/(𝐼𝑛𝑡𝑒𝑟𝑛𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠) External liabilities -: Debentures + long term liabilities + current liabilities Internal liabilities –: equity share capital + preference share cap. + cap. reserve + undistributed reserve & surplus – ( Accumulate losses + fictitious assets + intangible assets) Solvency Ratio (𝑇𝑜𝑡𝑎𝑙 𝑜𝑢𝑡𝑠𝑖𝑑𝑒𝑟^′ 𝑠 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠)/(𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠) Total outside liabilities -: Long term liabilities + current liabilities Total assets -: Assets – ( fictitious assets + intangible assets who’s realizable value is Zero ) Proprietary Ratio (𝑃𝑟𝑜𝑝𝑟𝑖𝑒𝑡𝑜𝑟𝑦 𝑓𝑢𝑛𝑑)/(𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠) Proprietary fund is also known as owner’s fund/Internal liability/ Net worth/ Shareholder’s Fund etc. Total asset have same meaning as Solvency Ratio Fixed Asset Ratio (𝑁𝑒𝑡 𝐹𝑖𝑥𝑒𝑑 𝑎𝑠𝑠𝑒𝑡𝑠)/(𝐿𝑜𝑛𝑔 𝑡𝑒𝑟𝑚 𝑓𝑢𝑛𝑑𝑠) Long term funds -: Capital + Long term loans + Debenture Net Fixed asset -: Fixed Assets – Provision for Depreciation Interest coverage ratio 𝐸𝐵𝐼𝑇/(𝐼𝑛𝑡𝑟𝑒𝑠𝑡 𝑝𝑎𝑦𝑎𝑏𝑙𝑒) You can Take live Classes for CA , CS , CMA M.Com, B.com 11th & 12th 1st grade in Commerce B.ed
Views: 2402 Ramakant Ratawa
Ratios - Debt to Equity
 
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The debt to equity ratio is an important ratio for both account and case analysis. It advises stakeholders with regards to a business's financing structure.
Views: 1510 Else Grech Accounting
#101,Class 12 accounts (Accounting ratio:Debt-Equity ratio)
 
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Class 12 Accounts Accounting ratios Debt-Equity ratio Accounts adda video 101 • Follow gaurav sir on instagram - @gauravjain3497 • Our books are now available on Amazon  Special Combo - Economics on your tips Micro + Macro- http://amzn.in/d/eSxj5Ui  Economics on your tips Macroeconomics - http://amzn.in/d/2AMX85O  Economics on your tips Microeconomics - http://amzn.in/d/cZykZVK • Official series of playlists  Class 12 Accounts complete course - https://www.youtube.com/playlist?list=PLfwl6GH_DzV4BtVbnkbp2f-cQxWmah237  Class 11 accounts complete course - https://www.youtube.com/playlist?list=PLfwl6GH_DzV7MzMAA4-FUA6kG7KADocfQ  Cash flow statement - https://www.youtube.com/playlist?list=PLfwl6GH_DzV7cFfh3DHoNgFG89im5hxL-  NPO – Not for Profit Organization - https://www.youtube.com/playlist?list=PLfwl6GH_DzV6JVytl_klyQrbQ6g8DL-x_ • Our other channels  mind your own business - https://www.youtube.com/channel/UC2JNrw4j7Eo4R5cZXXn8rNw  economics on your tips - https://www.youtube.com/channel/UCUpHeFrAvoqcdGgl_W83x6w • In order to promote us and help us grow - Paytm on – 7690041256 • For sending your wishes and greetings Address – Gaurav Jain ( 7690041256 ) Shop number 23 , Paliwal pipe fittings navjyoti road, Kaiserganj Ajmer ( Rajasthan ) Pincode - 305001 #accountsadda #class12 #gauravsir
Views: 47865 Accounts Adda
JAIIB CAIIB Ratio Analysis Fixed Asset Ratio Debt Equity Ratio by Vishal Mantri 9960560404
 
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Get JAIIB CAIIB question bank with explanations on https://yuvaguru.com Ratio analysis is the process of determining and interpreting numerical relationships based on financial statements. A ratio is a statistical yardstick that provides a measure of the relationship between two variables or figures. Fixed assets to net worth is a ratio measuring the solvency of a company. This ratio indicates the extent to which the owners' cash is frozen in the form of fixed assets, such as property, plant, and equipment, and the extent to which funds are available for the company's operations (i.e. for working capital). Debt/Equity Ratio is a debt ratio used to measure a company's financial leverage, calculated by dividing a company's total liabilities by its stockholders' equity. The D/E ratio indicates how much debt a company is using to finance its assets relative to the amount of value represented in shareholders' equity.
Views: 873 yuvaguru
Assets, Liabilities & Equity - Explained in Hindi
 
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Assets, Liabilities and Equity explained in Hindi. What are Assets? What are Liabilities? What is Equity? How are they connected? Assets comprise of current assets and non current assets like fixed assets or tangible assets and intangible assets. Similarly, liabilities include current liabilities and non current liabilities. Equity is comprised of common equity and preferred equity. Related Videos: Equit vs Debt: https://youtu.be/5CWrpR6mcFw Asset & Types of Assets: https://youtu.be/P82pyHmX_BA Current Assets & Current Liabilities: https://youtu.be/6_ZPGktZIts Earnings Per Share (EPS): https://youtu.be/SDXp64flfJI एसेट्स, लाईबिलिटीज़ और इक्विटी को इस वीडियो में हिंदी में समझाया गया है। एसेट्स क्या होते हैं? लाईबिलिटीज़ क्या होती हैं? इक्विटी क्या होती है और ये तीनो एक-दूसरे से किस तरह कनेक्टेड हैं। Share this Video: https://youtu.be/4BhpDCAL62M Subscribe To Our Channel and Get More Property and Real Estate Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g If you want to become an Expert Real Estate investor, please visit our website https://assetyogi.com now and Subscribe to our newsletter. In this video, we have explained: What are the assets, liabilities, and equity? How to read a balance sheet of a company? How assets, liabilities, equity are related to each other? Are equity and net worth and net assets same? What is the meaning of retained earnings? What all information we get from a balance sheet of a company? How to analyze the balance sheet of any company? Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Instagram - http://instagram.com/assetyogi Pinterest - http://pinterest.com/assetyogi/ Twitter - http://twitter.com/assetyogi Facebook – https://www.facebook.com/assetyogi Linkedin - http://www.linkedin.com/company/asset-yogi Google Plus – https://plus.google.com/+assetyogi-ay Hope you liked this video in Hindi on “Assets, Liabilities & Equity”
Views: 38499 Asset Yogi
Return on Investement and Return on Equity (ROI / ROE) - Ratio Analysis
 
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Explained the concept of Return on Capital Employed / Return on Investment (ROI) and Return on Equity (ROE). Student can also watch following lectures for better understanding of the topic: 1. https://www.youtube.com/watch?v=76gMXQBnbps 2. https://www.youtube.com/watch?v=1iYK6s5_Db0 3. https://www.youtube.com/watch?v=hMoOk6iI564 4. https://www.youtube.com/watch?v=H7Etrk0xfAs Download Assignments https://drive.google.com/drive/folders/0BzfDYffb228JNW9WdVJyQlQ2eHc?usp=sharing #Accounting #RatioAnalysis
Views: 52139 CA. Naresh Aggarwal
Return on Total Asset ratio (Formula, Examples) | Calculation
 
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In this video, we are going to discuss about Return on total asset ratio in detail. Including its formula, examples and calculation and many more. 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐑𝐞𝐭𝐮𝐫𝐧 𝐨𝐧 𝐓𝐨𝐭𝐚𝐥 𝐀𝐬𝐬𝐞𝐭𝐬? ----------------------------------------------------- This ratio measures a company's EBIT i.e earnings before interest and taxes relative to its total net assets. 𝐅𝐨𝐫𝐦𝐮𝐥𝐚 𝐟𝐨𝐫 𝐑𝐞𝐭𝐮𝐫𝐧 𝐨𝐧 𝐓𝐨𝐭𝐚𝐥 𝐀𝐬𝐬𝐞𝐭𝐬 -------------------------------------------------------- Return on Total Assets Formula = EBIT / Average Total Assets 𝐄𝐱𝐚𝐦𝐩𝐥𝐞 𝐨𝐟 𝐑𝐞𝐭𝐮𝐫𝐧 𝐨𝐧 𝐓𝐨𝐭𝐚𝐥 𝐀𝐬𝐬𝐞𝐭𝐬 -------------------------------------------------------- XYZ International company has a net income of $200,000. And in this net income figure, includes expense interest i.e of $14,000 and the tax of $30,000. But when these both expense are added back, the EBIT of the company is $244000. The total assets figure for the company is $6,000,000. Therefore, the return on total assets is: (EBIT) $244000 ÷ (Total assets) $6,000,000 = 4% of ROTA (Return on total assets) To know more about Return on Total Assets Ratio, you can go to this 𝐥𝐢𝐧𝐤 𝐡𝐞𝐫𝐞: https://www.wallstreetmojo.com/return-on-total-assets-roa/
Views: 433 WallStreetMojo
#1 Ratio Analysis [Liquidity & Activity Ratios] ~ Concept behind formation of a Formula
 
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#RatioAnalysis #LiquidityRatios #ActivityRatios Described the concept, reason and logic behind formation of different formulas of analysis of financial statements. I have discussed the core concept of contents used in the following formulas: Current Ratio, Quick Ratio, Fixed Assets Turnover Ratio, Current Assets Turnover Ratio and Working Capital Turnover Ratio, Further discussed concept of Current Assets, Quick Assets so that student need not to remember formula to solve any question Connect on Facebook : https://www.facebook.com/ca.naresh.aggarwal Download Assignments: https://drive.google.com/drive/folders/0BzfDYffb228JNW9WdVJyQlQ2eHc?usp=sharing
Views: 143036 CA. Naresh Aggarwal
Debt to Equity Ratio क्या होता है ? What is Debt to Equity Ratio ?
 
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Financial Ratios & Analysis - Explained in Hindi
 
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An introduction to Financial Ratio Analysis in hindi. Financial ratios like profitability ratios, liquidity ratios, solvency ratios (leverage or debt ratios), activity ratios (efficiency ratios) and valuation or market ratios are analyzed before making an investment decision or to judge the financial health of a company. Few examples are discussed for each type of ratio for eg. profit margin, current ratio, debt ratio, inventory turnover ratio, earnings per share (EPS) and P/E ratio. Related Videos: Profitability Ratios - Gross, Net, Operating Profit Margin : https://youtu.be/pHgiuO2ZYoU Liquidity Ratios & Solvency Ratios: https://youtu.be/ZMSW9BYb_Yo Return on Investment (ROI): https://youtu.be/ij7y5e2MVG4 Earnings Per Share (EPS): https://youtu.be/SDXp64flfJI इस वीडियो में जानिए फाइनेंसियल रेश्यो एनालिसिस का हिंदी में परिचय। फाइनेंसियल रेश्यो जैसे की प्रोफिटेबिलिटी रेश्यो, लिक्विडिटी रेश्यो, सॉल्वेंसी रेश्यो (लिवरेज या डेब्ट रेश्यो), एक्टिविटी रेश्यो (एफिशिएंसी रेश्यो) और वैल्यूएशन या मार्केट रेश्यो को एनालाइज़ किया जाता है कोई भी निवेश का निर्णय लेने से पहले और किसी कंपनी के फाइनैंशल हेल्थ को जज करने के लिए भी किया जाता है। हर एक प्रकार के रेश्यो के लिए कुछ उदाहरणों पर चर्चा की गयी है जैसे: प्रॉफिट मार्जिन, करंट रेश्यो, डेब्ट रेश्यो, इन्वेंटरी टर्नओवर रेश्यो, अर्निंग्स पर शेयर (EPS) और P/E रेश्यो। Share this Video: https://youtu.be/CZscpOND3Vs Subscribe To Our Channel and Get More Property and Real Estate Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g If you want to become an Expert Real Estate investor, please visit our website https://assetyogi.com now and Subscribe to our newsletter. In this video, we have explained: What are the financial ratios? How financial ratio helps you to understand the financial health of a company? What is the concept of financial ratios? How to analyze a company's financial health using financial ratios? How many types of financial ratios are used for the financial status of a company? What is the meaning of different financial ratios? How to calculate different financial ratio? How to do financial ratio analysis? What is the concept of financial ratio analysis? Which financial ratios can be used to analyze the financial status of a company? What is the basic concept of profitability ratios, liquidity ratios, solvency ratios, activity ratios and market ratios? Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Twitter - http://twitter.com/assetyogi Facebook – https://www.facebook.com/assetyogi Instagram - http://instagram.com/assetyogi Pinterest - http://pinterest.com/assetyogi/ Linkedin - http://www.linkedin.com/company/asset-yogi Google Plus – https://plus.google.com/+assetyogi-ay Hope you liked this video in Hindi on “Financial Ratios & Analysis”.
Views: 34307 Asset Yogi
Return on sales, Return on assets and Return on Equity - Ratio Computation
 
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These ratios are an indicator of measuring the operating efficiency of the company. Question: &J Plumbing, Incorporated's income statement shows a net profit before tax of $468 and net sales of $7,482 for 2010. Total assets are at $3,244. The balance sheet lists the company’s equity for fiscal year ending 2010 as $1,746. Calculate the following ratios for this company: Return on sales ratio (net profit margin) Return on assets (ROA) Return on equity (ROE)
Views: 402 transtutors1
Calculation of Proprietary Ratio- By Jitender Kumar
 
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Calculation of Proprietary Ratio- By Jitender Kumar { M.Com. , M.Phil. , C.M.A.(Inter) , C.S.(Inter) , P.G.D.B.A. , P.G.D.F.M. , U.G.C.N.E.T. Qualified } This is a channel for Financial Accounting, Corporate Accounting, Cost Accounting, Management Accounting and Financial Management. If you have doubts in a particular topic, whatsapp me that topic on my number 8447451771 or write in the comment box. I will definitely try to make tutorial for that topic. Brief description about Mr. Jitender Kumar Mr. Jitender Kumar is a graduate in commerce from Delhi University. He holds M.Com. and M.Phil degrees from Madurai Kamaraj University. He has also obtained Post Graduate Diploma in Financial Management and Post Graduate Diploma in Business Administration from Annamalai University. He qualified Cost and Management Accounting (C.M.A.)(Inter) in his first attempt and obtained All India Rank 48. He also qualified C.S.(Executive) in his first attempt securing first division. He qualified U.G.C.N.E.T. IN June 2012 with an enormous total of 75% marks. Besides this, he holds many certifications from National Stock Exchange(N.S.E.). Since 2002, he has taught many hundreds students. For more videos log on to: https://www.youtube.com/c/JitenderKumar2020 1. What does a high operating ratio indicate? Ans. High operating ratio indicates higher operating cost of the business & thus lower operating profits are available to the firm. 2. A Ltd. and B Ltd. are two companies operating in the same field and having STR of 4 times and 5 times respectively. Which company is having a better STR? Ans. STR of B Ltd. is better than the STR of A Ltd. since higher STR indicates efficient performance i.e. stock is being converted into sales quickly. 3. Give any two ratios judging the efficiency of a concern. Ans. STR and DTR. 4. What do you understand by Accounting Ratio? Ans. Accounting Ratio may be defined as a mathematical expression of the relationship between two items or group of items shown in the Financial Statements. 5. State any two limitations of Ratio Analysis. Ans. (i) Qualitative factors are ignored. (ii) Price level changes are not reflected. 6. State the limitation of ratio analysis regarding qualitative aspect. Ans. As ratio are arithmetical expression, qualitative aspect cannot be presented through ratios. Therefore, in making decision with the help of ratio, almost care should be taken, as ratio is only one-sided approach to measure the efficiency of the business. 7. Name the ratios that indicate the liquidity of an enterprise. Ans. Current Ratio and Liquid Ratio. 8. What is the ideal Current Ratio and Quick Ratio? Ans. Ideal Current Ratio 2:1, Ideal Quick Ratio 1:1 9. How the solvency of a business is assessed by ‘Financial Statement Analysis’? Ans. Through solvency Ratios, the solvency of a business is assessed by ‘Financial Statement Analysis’. 10. What does a low Debtors’ Turnover Ratio indicate? Ans. It may be an indication of long credit period or slow realisation from debtors. 11. What does a low working Capital Turnover Ratio indicate? Ans. It is an indication of inefficiency of working capital management. 12. How the ‘Earning Capacity of a business’ is assessed by ‘Financial Statement Analysis’? Ans. On the basis of ‘Profitability Ratios’ earning capacity of a business is assessed. 13. What will be the Operating Profit Ratio, if Operating Ratio is 82.95%? Ans. Operating Profit Ratio = 100- Operating Ratio = 100- 82.59 = 17.41%. 14. The gross Profit Ratio of a company is 50%. State with reason whether the decrease in rent received by Rs.15,000 will increase, decrease or not change the ratio. Ans. Decrease in rent received by Rs.15,000 will not change the Gross Profit Ratio because rent received neither effects the gross profit nor the net sales. 15. X Ltd. has a Debt Equity Ratio at 3:1. According to the management, it should be maintained at 1:1. What are the two choices to do so? Ans. The two choices to maintain Debt Equity Ratio at 1:1 are- a) To increase the Equity b) To reduce the debt. 16. You are a Debenture holder of a reputed company. Mention any two ratios that you will compute to examine whether your decision was justified. Ans. (i) Debt Equity Ratio (ii) Interest Coverage Ratio. 17. What does a higher inventory turnover ratio indicates? Ans. A higher inventory turnover ratio indicates that finished inventory is rapidly turning into sales.
Views: 1499 Jitender Kumar
Proprietary Ratio - Learn Accounting Online
 
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PROPRIETARY RATIO Objective of this video is to understand What is proprietary ratio ? What is the formula for proprietary ratio ? The components of shareholders funds. The components of total assets. The objective of calculating proprietary ratio. Examples of proprietary ratio . Proprietary ratio is also called as EQUITY RATIO. This is a variant of the debt-to-equity ratio. It is also known as EQUITY RATIO or net worth to total assets ratio. Proprietary or Equity ratio indicates the long-term or future solvency position of the business. Proprietary Ratio = Proprietor's Funds or Shareholders Funds / It is usually considered that higher the proprietary ratio the better it is for all those concerned with the firm. Total Assets (Excluding Fictitious Assets) Shareholder's funds include equity share capital plus all reserves and surpluses items. Total assets include all assets, including Goodwill. As the total assets are always equal to total liabilities, the total liabilities, may also be used as the denominator in the formula for proprietary ratio. This ratio may be further analyzed into the following two ratios: 1) Ratio of fixed assets to shareholders or proprietors' funds. 2) Ratio of current assets to shareholders or proprietors' funds.
Views: 3897 Alternate Learning
Ratio Analysis: Return on Capital Employed (ROCE)
 
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This short revision video introduces the concept of Return on Capital Employed.
Views: 76793 tutor2u
Investopedia Video: Return On Assets (ROA)
 
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Be the first to watch our newest videos on Investopedia Video: http://www.investopedia.com/video/ Return on assets is one of the basic metrics used to evaluate a company's stock. Find out what it can tell you about a stock and learn how to calculate it here. For more on ROA and how it can help you better evaluate companies, check out; Use ROA To Gauge A Company's Profits http://www.investopedia.com/articles/fundamental/04/012804.asp ROA And ROE Give Clear Picture Of Corporate Health http://www.investopedia.com/articles/basics/05/052005.asp
Views: 90004 Investopedia
Debt to Equity Ratio
 
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What is debt to equity ratio? A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets. To learn more go to: http://www.investopedia.com/terms/d/debtequityratio.asp
Views: 7254 DrJobinsp
4 Key Financial Ratios for Banks - Banking Stocks Fundamental Analysis | Part 2
 
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4 Key Financial Ratios for Banks i.e. fundamental analysis for banking stocks are as follows 1. Financial Leverage or Equity Multiplier 2. Return on Assets 3. Return on Equity 4. NIM or Net Interest Margin These are profitability ratios or risk ratios. With the help of these 4 Financial Ratios for Banks, you can decide which banking stocks are fundamentally strong or weak. 1. Financial Leverage or Equity Multiplier: This ratio is calculated by dividing total capital or asset to net worth of the bank. The maximum value is 15. If this value exceeds 15 then it implies that bank is taking a high risk by accepting more deposits. 2. Return on Assets: It is the profitability ratio arrived by dividing Net Profit / Total Assets. The idea value is 1% or more than that. 3. Return on Equity: Net Profit divided by Net Worth is Return on Equity. The idea value is 15% or more. You can also calculate by multiplying Equity Multiplier and Return on Assets 4. NIM or Net Interest Margin: This is a very important financial ratio. You can calculate by (Interest Earned - Interest Expended) divided by Total Assets. The max value is 3% i.e. higher NIM means the bank is disbursing more loans to improve NIM and it reduces the return on assets. It is not considered a good sign. If you liked this video, You can "Subscribe" to my YouTube Channel. The link is as follows https://goo.gl/nsh0Oh By subscribing, You can daily watch a new Educational and Informative video in your own Hindi language. For more such interesting and informative content, join me at: Website: http://www.nitinbhatia.in/ T: http://twitter.com/nitinbhatia121 G+: https://plus.google.com/+NitinBhatia #NitinBhatia
Views: 17167 Nitin Bhatia
debt to equity ratio malayalam
 
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debt to equity ratio malayalam Debt/Equity (D/E) Ratio, calculated by dividing a company's total liabilities by its stockholders' equity, is a debt ratio used to measure a company's financial leverage. The D/E ratio indicates how much debt a company is using to finance its assets relative to the value of shareholders' equity debt to equity ratio malayalam.