FULL FORM WITH DETAILS

WHAT IS PBT           PBT Stand for Profit before Tax. It includes all of the company's profit before tax such as operating,non operating,continuing operation and non continuing operations. Profit before tax exists because tax expenses is constantly changing. PBT gives an investor to good idea of changes in a company's profit or earnings from year to year. CALCULATION OF PBT AND ITS IMPORTANCE           Profit before tax includes all income earned regardless of the source. It includes sales,commission,service revenue and interest. PBT may be calculated by taking the net income of an organisation and adding the corporate income tax.         PBT hold it importance in providing internal management and external users of financial data with a company's operating performance. PBT minimise one additional variable that may hold different indicators that influence the way financial data read. It can be understa...

WHAT IS PAT      The PAT stand for profit after tax. The profit after tax is the earning of a business entity after all taxes which is liable to pay have been deducted. After deduction of tax the amount which available with the company is net profit. The profit after tax figure is considered the best measure of the ability of the business entity to generate a return,since it incorporates both operating income and income from other sources like interest income etc.        The profit after tax margin is closely observed by the investors to assess the income generating ability of a company which changes over period of time. Profit margin of a company could be considered valuation indicator that may result in change in the stock price.  

  WHAT IS ROC             ROC Stand for Registrar of Companies. ROC is an officer under the ministry of corporate affairs which is the body that deals with the administration of companies and Limited Liability Partnership in India. As per company act 1956, the ROCs are entrusted  with principal duty of registering both the companies and LLPs across the states and union territories.          The registrar of companies also certifies that Limited Liability partnership comply with the legal requirements contained in the companies Act,2003.         Registrar of companies maintains a registry of records related to company registered with them. General public can access the information related to company on payment of stipulated fee. It helps in the transparency in the functioning of the company. The central government hold administrative control over the registrar of companies with the help of region...

WHAT IS RETURN ON ASSET       Return on asset is a type of metric that measures the profitability of a business in relation to its total asset. The ratio shows how company is performing by comparing the profit it earns to the capital it's invested in assets. The higher return of the company indicates that management of the company is efficient and it is utilizing the economic resources properly. HOW RETURN ON ASSET IS CALCULATED      The ROA is calculated with the help of following formula --- ROA =      Net Income                  ___________                  Average Asset     Net income is equal to the earning or income in the year.     Average asset is equal to ending assets minus beginning asset divided by 2.  IMPORTANCE OF RETURN ON ASSET     Return on asset formula is an important ratio...

WHAT IS TERM REPO       Term Repo includes borrowing period of more than one day. The usual duration of term repo is 7 days,14 days,and 28 days. In term repo banks can get money from the central bank for more than a days. The Reserve Bank normally announces the term repo auction as and when there is a need of fund by the banks for more than a day. 

WHAT IS OVERNIGHT REPO         A Repo transaction for a day is known as Overnight Repo. In this transaction is done a day and the following day. In Overnight Repo banks get money from the central bank as per their requirement and repay the amount the following day. Transaction is done in the form of security. Banks sell securities to the RBI and gets money and the following day bank repurchase the securities.   

   WHAT IS REVERSE REPO RATE          Reverse Repo Rate is an important monetary policy tool used by the Reserve Bank of India to control liquidity and inflation in the economy. The interest rate at which the Reserve Bank of India borrows money from banks for the short term to infuse the money in economy via government policies is called reverse repo rate. RBI offer attractive interest rate through reverse repo rate. Banks voluntarily lend excess money to the central banks as it provides to earn attractive interest rate with security. Lending money to the central banks is secure.