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Showing posts with the label ECONOMICS&FINANCE

WHAT IS CAGR CAGR

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What Is CAGR (Compound Annual Growth Rate) Compound Annual Growth Rate (CAGR) is a commonly used financial measure that shows the average annual rate at which an investment grows over a specific period. It assumes that the investment grows at a consistent rate and that the returns are compounded over time. Unlike looking at the return for each individual year, CAGR converts the overall growth of an investment into a single annualised rate. This makes it easier to understand long-term performance and compare different investments. How to Calculate CAGR Calculating CAGR is relatively simple when you know the starting value, ending value, and investment period. The CAGR formula is: CAGR = [(EV / BV)^(1/n) − 1] × 100 Where: BV = Beginning Value of the investment EV = Ending Value of the investment n = Number of years the investment was held Steps to Calculate CAGR Step 1: Identify the beginning and ending values Find out how much you initially invested and what the investment was worth ...

FULL FORM OF GDP

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FULL FORM OF GDP       Gross Domestic Product (GDP) Gross Domestic Product (GDP) is the total market value of all the final goods and services produced within the country during specific time of period.  It serves as the primary scorecard for a nation's overall economic health, size, and growth rate. it helps to economists to understand the country financial health and government makes  policy decision on   the basis of this data. Understanding Gross Domestic Product (GDP) TRADE SURPLUS Of all the components that make up a country’s GDP, the foreign balance of trade is especially important. The GDP of a country tends to increase when the total value of goods and services that domestic producers export to foreign countries exceeds the total value of foreign goods and services that domestic consumers buy. In this situation a country is said to have a trade surplus. TRADE DEFICIT In trade deficit if the amount that domestic consumers spend on foreign produ...

FULL FORM OF CRISIL

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             WHAT IS CRISIL CRISIL is a credit rating agency established in India that provides ratings, analysis, risk, and policy advice related to different types of investments. CRISIL not only assesses the creditworthiness of funds, but also provides extensive research and insights into the performance, risks, and threats associated with any funds or business or company.   Full Form of CRISIL The full form of CRISIL is Credit Rating Information Services of India Limited . CRISIL rates numerous financial sector entities, such as banks and non-banking financial institutions, housing finance companies, etc. CRISIL has a large client base to serve ranging from micro, small, and medium companies to large corporations, investors, and top global financial institutions.                             Some facts about Credit Rating Information Services of India Limited (CRISI...

FULL FORM OF ARPU

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  FULL FORM OF ARPU The full form of ARPU is Average Revenue Per Unit. It is the measure of the revenue generated by per unit. It is also known as average revenue per users. It helps management of company as well as investors to refine their analysis of a company revenue generation. Capability and growth at the per unit level. It is calculated as total revenue divided by the numbers of unit, users or subscribers. CALCULATOR OF ARPU In order to calculate ARPU accurately, there must be define a standard time period. Most telephone and communication companies calculate ARPU on a month to month basis. The total revenue generated during the specified time period should be divided by the number of units or users. USES OF ARPU This term is used by companies which offers subscription services to there clients for instance, telephone carriers, internet service providers and hosts. It is a measure of revenue generated by one cus...

FULL FORM OF EBITDA

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FULL FORM OF EBITA EBITDA stands for Earnings before Interest, Tax, Depreciation, and Amortisation. It is a economical tool used to provide insights into a company's profitability.  It is used to evaluate company's operating performance.  It analyses whether the company can generate income from its core business activities. While doing so, it excludes the impact of financing costs, tax obligations and non-cash expenses like depreciation and amortisation. Investors, analysts and businesses use EBITDA calculations to compare profitability and evaluate the performance of any company.  KEY WORDS WHAT IS DEPRECIATION? The concept of depreciation recognizes that assets decline its value over a period of time. Depreciation is a methodical way to  asses the reduced cost of any equipment and  fixed asset of the company over a period of time. By smoothing out the financial impact of asset purchases, depreciation affects a business’s income statement and balance sheet. WHA...

PE RATIO

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  WHAT IS PE RATIO IN STOCK MARKET The PE ratio is commonly used for stock selection, whether it is suitable to buy or not. The PE ratio as certain the value of a company based on the current stock value per share for every rupee of its future earning. PE ratio helps to understand company's worth presently and future growth anticipated based on how its share prices are relative to its earning per share. It is a important tool for the investors for stock evaluation. If a PE ratio is high, it means that the stock is overvalued and take the decision not to buy that particular stock. If PE ratio is low, investors takes the decision to buy it due to it cheap price.  P/E Ratio Formula P/E Ratio = (Current Market Price of a Share / Earnings per Share)  Price to Earnings Ratio is one of the most widely-accepted metrics by analysts and investors across the world. It signifies the amount of money an investor is willing to invest i...

WHAT IS ICWA

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      FORM OF ICWA ICWA stands for   Institute of Cost and Works Accountants . This institute is one of India’s most respected professional designations in accounting. Presently the ICWA course has been officially renamed as CMA (Cost and Management Accountant). Students those who are interested in finance they can chose the course offered by ICWA. ICWA COURSE OVERVIEW ICWA refers to both the professional institute and the qualification that trained students with skills in cost accountancy, financial planning, auditing, and management. Completing the ICWA (now CMA) course trained the individual eligible for a vast of roles in organizations, industry, banks, and the public sector. ICWA is a valuable asset for those keen to pursuing successful finance and commerce careers. ...

WHAT IS CRYPTOCURRENCY

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  class="gmp46Title displayBase" style="background-color: white; box-sizing: inherit; color: #44475b; font-size: 28px; font-variant-ligatures: none; line-height: 2.4375rem; margin: 0px 0px 40px; user-select: text;" > Cryptocurrency A cryptocurrency is a virtual or digital currency that can be utilised to buy goods and services, which implies no physical coin or bill used and all the transactions take place online. It used an online ledger with robust  cryptography to ensure that online transactions are completely secure. Here full details  included all the details related to cryptocurrency such as types, how it works, uses, how to buy and store it. What is Cryptocurrency It is a purely virtual currency that runs on the system of cryptography. It functions as a decentralized medium of exchange where cryptography is used to validate and facilitat...