Cash Flow shows inflows (receipts) and outflows (payments) of cash during a particular period. It analyses the reasons for changes in balance of cash between two balance sheets. “Cash” refers to cash …

## What is Opportunity Cost?

Opportunity cost refers to the unrealized loss that occurs due to lost opportunities. It is related to alternate uses of scarce resources. The scarcity and alternative uses of scarce resources gives …

## What is Rule of 72 ?

People love the idea of doubling money with their investments. Rule of 72 is helpful to know how much time it takes to double the investment value. The mathematical calculations are difficult for …

## Sharpe Ratio – What is it?

William F Sharpe has propounded this ratio in the late 1960s. He was a Nobel laureate and a great professor of finance at Stanford University. Sharpe ratio is a widely used metric in the field of …

## All about Liquidity Ratio

Liquidity is a prerequisite for the survival of the firms and is the ability of a firm to meet the short-term obligations when they become due. Liquidity ratio is helpful in determining the financial …

## What is Beta (β)?

Beta is an important term related to investment and finance. The Beta of an investment is a number that describes the correlates the volatility of an asset with the volatility of a benchmark of the …