Cash flow management is the art and science of monitoring, analyzing, and optimizing the flow of cash in and out of a business. It involves carefully managing the timing and magnitude of cash inflows (revenues, loans etc.) and outflows (expenses, purchases, debt repayments, investments etc.) to ensure that a company maintains adequate liquidity to meet …
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In the realm of financial analysis, metrics play a crucial role in evaluating investment opportunities. One such metric that holds significant importance is the Internal Rate of Return (IRR). IRR serves as a yardstick for assessing the potential profitability of an investment or project. In this article, we will delve into what IRR entails, provide …
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What is Net Present Value (NPV)? Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project. It represents the difference between the present value of cash inflows and outflows over a specific period. In essence, NPV measures how much value an investment will generate compared to its …
What is Time Value of Money? The Time Value of Money means that money available today is worth more than the same amount of money received in the future. This is due to its potential earning capacity, or the opportunity cost of not having the money available immediately. In essence, it asserts that a dollar …
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Fundamental analysis aims to determine the intrinsic value of an asset or security by assessing various factors affecting the company’s valuation from both macro and micro perspectives. It involves delving into the company’s financials, industry dynamics, management quality, and economic environment. The primary goal is to estimate the true worth of the security and compare …
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