How to Analyse the Balance Sheet The balance sheet is one of the most core financial statements, providing a comprehensive snapshot of a company's financial health at a specific point in time. Analysing a balance sheet requires a systematic approach and a keen eye for detail. By dissecting each component and understanding their
Top 5 Financial KPIs and Metrics to Measure Business Performance Measuring a company's financial performance is vital for business leaders, investors, and other stakeholders. Financial metrics provide insights into the financial health and growth prospects of a business. By regularly tracking key financial performance indicators (KPIs), management can identify areas for improvement, adjust
Working Capital: Definitions, Formulas, Examples Working capital is a vital concept in corporate finance and business management. It represents the liquid assets companies need to fund day-to-day operations and pay short-term obligations. Having adequate working capital ensures a company has sufficient cash flow to meet its current financial obligations and unforeseen expenses that
What is EV/EBITDA? Concepts, Formula and Examples EV/EBITDA is an important financial ratio used in corporate finance and valuation analysis. It stands for Enterprise Value divided by Earnings Before Interest, Taxes, Depreciation and Amortization. EV/EBITDA is a popular valuation multiple used to compare companies within the same industry and measure their relative valuation.
Guide to FP&A - Financial Planning and Analysis Financial Planning and Analysis (FP&A) plays a crucial role in supporting executives and managers make informed business decisions. FP&A refers to the processes, methods and tools used by organizations for budgeting, forecasting, performance analysis, and decision support. The FP&A team works to provide accurate and
Time Weighted Returns Explained: Definitions, Formulas & Examples Time weighted returns (TWR) is an indispensable metric used to evaluate the time-weighted rate of return and investment portfolio performance while adjusting for external cash flows. By stripping out liquidity impacts outside a manager’s control, TWR provides a clearer measure of an investment manager’s performance
Career Paths in Investment Banking Investment banking is an extremely competitive industry that offers lucrative career opportunities within finance for skilled professionals. The most coveted investment banking jobs are centred around advising and facilitating mergers, acquisitions, IPOs, and other significant corporate finance transactions for companies, institutions, and governments. Financial advisory roles within investment
Investment Risk and Return Balancing and managing returns and risk on investment is the fundamental role of a fund manager. Measuring risk, historic returns and estimating expected returns from assets and asset classes are critical concepts in corporate finance, investment analysis and fund management. Investors and financial managers aim to maximise returns while
Top Statistical Tools Used in Finance and Investment Banking Statistics plays a crucial role in the financial industry. From investment banks to hedge funds, statistical tools are leveraged to analyse markets, assess risk, build trading strategies and make predictions. This article will provide an overview of the key statistical concepts and techniques used
What is Market Cap? Market capitalization, commonly referred to as market cap, is an important financial metric used to determine the size and value of a publicly traded company. Market Cap refers to the total market value of a company's outstanding equity shares. Essentially, it is the total equity market value of a
