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Taking a loan becomes a very challenging process if the IMPORTANT aspects are not covered properly. The main factors which I BELIEVE should be CONSIDERED before taking a loan are

• Credit score
• Interest rates
• Repayment term
• Debt: Income Ratio
• Value of collateral
• Liquid ASSETS

It is the capital that is required by the company to FINANCE its current assets. Working capital REPRESENTS the FUNDS to finance regular OPERATIONS that include day-to-day businesses. Working capital makes it EASY to gauge the company’s operating liquidity.

• Value-Based
  • Gross working capital
  • Networking capital
• Time-Based
  • Temporary working capital
  • Permanent working capital

I think out of many METRICS, the best ONE can be Price-To-EARNINGS Ration (P/E) Ratio. It shows the relation of the stock price of the company to its earnings. It is considered best to evaluate the financial service FIRMS.

Yes, I do FOLLOW the STOCK MARKET every day. I am very INTERESTED in banking sector stocks. ALSO, I have invested a part of my savings in the stock market.

• Identifying the purpose of the report: EVERY bit of the company’s data can’t be just added to the sales report. So, focusing on the data through which the company can achieve particular GOALS is the first step. The purpose of the sales can be any- identification of the interesting trends in sales over time, measuring the effectiveness of the campaign, or motivating the team to do better.
• Data gathering: COLLECT, filter, and analysis of the relevant data is the next step. To make the process-oriented towards the goal, outlining the metrics are important. It should contain several goods sold out in a particular time frame, KPIs, profits, net sales, CAS.
• Use of Visuals: All the accurate data should be presented in a visually appealing WAY such as charts, graphs. Choosing the right visual such as a bar chart, a pie chart is also a trick one should know about.
• Use of CRM Solutions: CRM software is sales apparatus that helps to cut out the fluff. The daily call report, the PRODUCTIVITY report can be prepared properly with the software.

I have always loved PLAYING with numbers and doing calculations. My interest in managing finances has motivated me to take the subject as a major in my graduation. I WANT to follow this career path for the long term. MOREOVER, I believe companies are very concerned about the financial analysis thing. I want to be a part of the process of how companies make themselves highly profitable. I always used to read about business leaders and biographies of entrepreneurs.

1. Liquidity: the amount of cash as WELL as the cash that is easily convertible to cash assets owned by a company. Liquidity is first considered for the short-term and then for the long-term.

2. Solvency: The company can meet its obligations continuously.

3. Operating Efficiency: It is the best SOURCE of its financial success and operating margin is used to indicate the efficiency.

4. Profitability: In evaluating a company, liquidity, operating efficiency, and basic solvency can perform BETTER. Net margin is a good METRIC for the evaluation of profitability.

NET present value is the idea of HELPING companies to engage in transactions or invest in projects having positive Net Present Value. It helps managers and investors to not invest in projects with a NEGATIVE Net Present Value. This rule is seen in accounts for Time Value of Money, capital budgeting projects. If the NPV of the PROJECT is positive then the company should move FORWARD with the idea of investing in that project.

The steps to prepare a cash flow statement are:

• COLLECTING data and BASIC documents:
• Measuring the changes in the Balance Sheet
• Put the Changes to the Statement of Cash Flows
• Non-cash items can be adjusted from the Statement of Total comprehensive income
• To verify completeness, material balance sheet items are prepared
• Perform a final check