12 pages carry this tag.
A small-cap stock's market value is based on the last small trade. When large funds try to sell at the same time, that price may not exist. This is an opinion piece on why part of the small-cap premium is not real.
Profit is an accounting opinion; cash is a fact. This is how a company can be profitable on paper and still unable to pay its bills.
Working capital decides how much cash a company must tie up to grow. Ten years of data for five large Indian manufacturers show very different models, and some quiet shifts worth noticing.
Operating working capital and the cash conversion cycle: how to work out DIO, DSO and DPO, sector benchmarks, negative working capital and manipulation.
Can a company pay its bills? The current, quick and cash ratios, interest coverage, undrawn credit lines and commercial paper rollover risk in India.
The debt to equity ratio compares borrowed money with shareholders' money. It shows how much of the business is financed by lenders who must be paid whether or not there is profit.
Interest coverage shows how many times over a company can pay its interest bill out of operating profit.
The quick ratio checks whether a company holds enough cash and liquid investments to pay the obligations coming due in the next few months, even in an emergency.
The current ratio compares everything a company expects to turn into cash within a year with everything it must pay within a year. It is the broadest measure of short-term solvency.
Net debt to EBITDA tells you how many years of operating cash profit it would take to repay all borrowings, net of cash on hand. It is the leverage measure lenders and rating agencies actually use.
Measures a company's ability to pay short-term obligations. Compares current assets to current liabilities.
A stricter liquidity measure that excludes inventory from current assets. Shows ability to meet obligations without selling inventory.
Related topics: Valuation, DCF, Relative valuation, Cost of capital, Financial statements, Cash flow, Earnings quality, Red flags
