Financial vikas

 Some hacks that help in quick analysis of a company: • DuPont Analysis  • Common Size Statement How? Let's find out ⤵️ ▣ DuPont Analysis It tells us how the ROE of the company is achieved. It may be due to an increase in profit margins (which is a good sign✅) or an increase in debt (which is a bad sign⚠️). #nseindia #niftyauto ▣ Common Size Statement One cannot compare apples to oranges.  Same way when we compare any companies, we have to compare them based on their margins and not the actual figure of profit or expenses. #stocks #business Common size statement shows every item of profit and loss or balance sheet as a % compared to sales and assets respectively.  ➡️ It makes comparing compa nies easier.  #invest

1⃣ Gross profit ratio: This ratio tells you what your business made after paying for the direct cost.  GPM of 50-70% is considered healthy & it would be for many types of businesses, like retailers, restaurants, manufacturers & other producers of goods. 2⃣ Operating profit margin: OPM show how well the company’s operations contribute to profitability.   A higher operating margin indicates that the company is earning enough money from business operations to pay for all associated costs involved in maintaining the business. 3⃣ Return on Equity(ROE): ROE means how effectively a business uses its equity & cumulative retained profits to generate income.  A general thumb rule says high ROE shows that the company’s management is more efficient in utilising its equity capital to grow its business. For ROE to make sense and add meaning, it must be compared to the company's previous ROEs or the industry average to produce a uniform decision. 4⃣ Return on Asset(ROA)...

 1️⃣ 80C ▶Maximum deduction amount: Upto ₹1.5 Lakh You should not sell the property before five years. 2️⃣ 24B ▶Maximum deduction amount: Upto ₹2 Lakhs on interest. You are eligible if you take a home loan for buying/constructing the house. 3️⃣ 80EE ▶Maximum deduction amount: Upto ₹50 thousand on interest. The loan amount should not exceed ₹35 lakhs & the house value should be less than ₹50 lakhs. 4️⃣ 80EEA ▶Maximum deduction amount: Upto ₹1.5 Lakh. If you are claiming tax benefits under 80EEA, then you cannot claim 80EE. The property value should not exceed ₹45 lakhs. Quest Tip - The best way to save more tax is to buy a house as a joint owner.  This way, both borrowers can claim tax benefits of ₹1.5 lakh each u/s 80C.  Also, remember the condition that if u claim tax deductions u/s 80EEA, you cannot claim tax deduc tions under section 80EE

  The transformational leadership style is similar to the coach style in that it focuses on clear communication, goal setting and employee motivation. However, instead of placing majority of the energy into each employee’s individual goals, the transformational leader is driven by a commitment to the organisation’s objectives. Because these types of leaders spend much of their time on the big picture, this style of leading is best for teams that can handle many delegated tasks without constant supervision. Example: Reyna is hired to lead a marketing department. The CEO asks her to set new goals and organise teams to reach those objectives. She spends the first months in her new role getting to know the company and the marketing employees. She gains a strong understanding of current trends and organisational strengths. After three months, she has set clear targets for each of the teams that report to her and asked individuals to set goals for themselves that align with those.

 Financial statement analysis is the one go-to analysis you should do before investing in any company.  It is used by shareholders as well as stakeholders to evaluate the business for better decision-making to understand the overall health of the company. (2/12) It is the process of analysing and assessing: 1⃣Profit & Loss  2⃣Balance Sheet   3⃣Cash Flow Statement of the company. Let's understand each financial statement individually⤵️  (3/12) • Profit & Loss Statements P&L gives a good picture of the Profitability of a company. P&L statement showcase all the expenses incurred and revenue generated during a financial year.  Thus, the statement is divided into two sections, namely:  ➡️INCOME  ➡️EXPENSES.  (4/12) ➡️Income includes revenue generated frm operations & other income. Revenue frm operations is generated frm core buss & other income is d income frm intrst such as banks, div income, etc.  ➡️Expense incl...