Check out ratios that can affect investments.
History Bollinger Bands were invented in the early 1980s by John Bollinger, a technical analyst and trader. Bollinger wished to create a tool that would assist traders in determining whether an asset was overbought or oversold. He noticed that asset prices tended to stay within a narrow range, which he could define using a moving …
Bollinger Bands: A Popular Indicator for Analyzing Market Trends Read More »
What is it? The Bayes Theorem computes the probability of an event’s occurrence by considering existing information or evidence. As new data becomes available, it is frequently used to update the probability of a hypothesis or event. Based on the prior probability of event A and the probability of event B given that event A …
Bayes Theorem: A Formula Used by Billion-Dollar Companies! Read More »
History J. Welles Wilder Jr. developed the Average True Range (ATR) technical indicator in the late 1970s. Wilder also introduced other widely used technical indicators, including the Relative Strength Index (RSI) and the Average Directional Index (ADI), commonly known as ADX. The Average True Range (ATR), another creation of Wilder, serves as a tool to …
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Definition The Asset ratio of a company’s net sales to its total assets is known as the asset turnover ratio. It gauges how effectively a business generates revenue from its assets. It is calculated by dividing the company’s total revenue by its total assets. The resulting figure represents the number of times the company’s assets …
Asset Turnover Ratio: All investors want to know Read More »
History The development of ANOVA dates back to the early 20th century when British statistician Ronald A. The method to compare the means of different groups was devised by Fisher. Fisher’s significant research helped ANOVA become widely used in the statistical community. Definition Researchers can compare the means of two or more groups using the …
How to Calculate income differences among regions with ANOVA Read More »
The Acid-Test Ratio, sometimes called the Quick Ratio, is a liquidity ratio that assesses a company’s capacity to settle its immediate liabilities using its most liquid assets. Usage It measures how much of a company’s present assets are liquid, or easily convertible into cash to settle its immediate liabilities. The Acid-Evaluation Ratio does not include …
The Accounting Rate of Return (ARR), a financial terminology, quantifies the anticipated average yearly return achievable from an investment, expressed as a percentage of the initial investment cost. It provides a concise way for comparing predicted returns from various investment ideas and assessing investment prospects. History Early in the 20th century, when the stock market …
Every transaction must have an equal impact on a company’s assets and liabilities, according to the account equation, a basic accounting principle. Since it has been around for so long, this equation has served as the foundation for double-entry accounting, which keeps precise financial records. History Luca Pacioli, an Italian mathematician and Franciscan priest, subsequently …
