Saturday, November 5, 2022

Tools of Financial Analysis

Trend Analysis: Trend analysis involves assessment of arithmetical relationship in which each item of several years  has to the same item of base years. 

Common size statements: It shown in analytical percentages of total assets, total liabilities and total sales. The total are taken as 100 and differences are expressed as a percentage. 

Thursday, November 3, 2022

Independent Director

An independent director is an non-executive director of a company who helps the company in improving corporate credibility and governance standards. He or She does not have any kind of relationship with the company.  

Wednesday, November 2, 2022

Negative Outlook

It refers the government is less capable to meet its financial/ debt obligations. Negative outlook results higher cost to government borrowings, stable outlook results less cost to government borrowings. Credit rating agencies are considers various factors before assign ratings. 

* Political risk

* Growth prospects 

* External liquidity (Market opportunities to convert liquid assets into cash) 

* International Investment Position 

* Fiscal performance ( How well a country use assets) 

* Debt burden 

* Flexibility of the monetary system  


Pigovian tax & Discount house

Pigouvian tax:  It is a tax levied on any market activities that generates negative externalities. This tax objective is to correct an inef...