Ratios

Check out ratios that can affect investments.

The Ultimate Guide to CapEx: Understanding, Planning, and Investing in Real Estate

History From the birth of civilisation, capital expenditure has been a key part of business. It is the allocation of resources to acquire, upgrade, or maintain fixed assets that allow organizations to produce revenue. Property, plant, and equipment are examples of fixed assets, as are intangible assets like patents, trademarks, and software. Definition Capital expenditure […]

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History From the birth of civilisation, capital expenditure has been a key part of business. It is the allocation of resources to acquire, upgrade, or maintain fixed assets that allow organizations to produce revenue. Property, plant, and equipment are examples of fixed assets, as are intangible assets like patents, trademarks, and software. Definition Capital expenditure

Bollinger Bands: A Popular Indicator for Analyzing Market Trends

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 »

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

Bayes Theorem: A Formula Used by Billion-Dollar Companies!

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 »

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

Average True Range: Understanding and Utilizing Volatility

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

Average True Range: Understanding and Utilizing Volatility 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

Asset Turnover Ratio: All investors want to know

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

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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

How to Calculate income differences among regions with ANOVA

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

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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

What is the Acid-Ratio?

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

What is the Acid-Ratio? 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

What is the Accountant Rate of Return (ARR)

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

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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

What is the accountant equation

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

What is the accountant equation Read More »

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

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