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Leverage Ratios: It focuses on long-term funds used by the businesses business. Its main objective is to measure the long-term solvency of a firm. Capital Structure Ratios: It focuses on Equity funds, debt capital and, preference capital. Its main objective is to find the portion of risky long-term funds. Coverage Ratios: Its main objective is to find whether the firm's earnings are sufficient to cover different charges like interest for debenture holders and dividends for shareholders. Table Of  Content Capital Structure Ratios Coverage Ratio Conclusion A. Capital Structure Ratios 1) Equity Ratio This ratio indicates the proportion of owners' funds to the total funds invested in the business. It is also called the propriety ratio. Shareholder's equity  = share capital ( both equity and preference ) + Reserve and surplus - Accumulated losses OR, Shareholder's equity = Total assets - current liabilities - long-term debt. If the majority of the fund of the business is...

What is Liquidity? In simple words, Liquidity is cash and cash equivalent. Here cash and cash equivalent denote marketable securities like shares which can be easily converted into cash. If somebody says there is a liquidity crisis in the bank it represents a shortage of cash in the bank. similarly, If somebody says there is excess liquidity in the bank it represents excess cash in the bank.  The objectives of Liquidity Ratios are to measures the short-term solvency of a firm. Liquidity ratios focus on current assets and current liabilities. 

Ratio Analysis: How to pick up a share of a company using financial ratios. How to take buy, sell and hold decisions. Know the major objectives of various ratios like Liquidity ratios, performance ratios, and profitability ratios. Ratio analysis enables the users of financial statements to make prompt decisions. Table of Content Meaning and objectives of Ratio Analysis 11 Important Financial Ratio Conclusion Meaning and objectives of Ratio Analysis Ratio analysis refers to the study of the relationship between various variables of a financial statement for the purpose of decision making. Ratio analysis is used by shareholders because it shows the financial position of the company and how the company is utilizing its capital and assets to generate revenue. The major objective of the liquidity ratios is to measure the short-term solvency of the firm. performance ratios measure the efficiency of asset and profitability ratios measures the profit margin and earnings.    11 Importa...

 In this blog you let's learn about the technique of fundamental analysis. Table of contents Introduction Economic Analysis Industry Analysis Company Analysis Conclusion  Introduction Fundamental analysis is one of the most important tools used by long-term investors. Every company has its own real value (intrinsic value). If the market price of the share of the company is greater than intrinsic value then the stock is said to be overvalued . In such a situation, if you have shares of any company then it's time to sell the shares . If the market price of the share of the company is less than intrinsic value then the stock is said to be undervalued . It's time to buy the share  of such a company as per your capacity. similarly, if the market price of the share of the company is equal to the intrinsic value then the stock is said to be correctly valued . It's time to hold the shares . In the short term though the market will fluctuate due to fear and greed of the shareh...

Is cryptocurrency Legal: Recently central Bank has published a notice to clarify whether the cryptocurrency is Legal or not.  Read this blog for more detail. Table of content what is cryptocurrency? Is cryptocurrency Legal in Nepal? conclusion what is cryptocurrency? In simple words, crypto means secret and currency means mode/medium of purchase of goods and services. It is a digital currency in which transactions are verified and records maintained by a decentralized system using cryptography rather than by a centralized authority. we can simply say it as a digital form of cash. There is no physical coin or bill unless you use a service that allows you to cash in cryptocurrency for a physical token. Bitcoin is one of the examples of a popular cryptocurrency. There is a very high risk and high return in cryptocurrency. It is a highly volatile (Almost there is a 30% fluctuation in the price of bitcoin in a day) market. there are both advantages and disadvantages of cryptocurrency. s...

  Top bank of Nepal : Is it right to invest in the Bank having high book value per share . In this blog, you will know about the top bank of Nepal having a high Net worth per share . Table of content Top 10 bank of Nepal based on book value per share Conclusion Top 10 bank of Nepal based on  Book Value  per share 1. NBL According to the annual report for the period ended 2077/78, NBL is the number one bank of Nepal based on book value per share . The book value of the bank is  263.89 per share in the current year. 2. NABIL According to the annual report for the period ended 2077/78, NABIL is the top second bank of Nepal based on book value per share . The book value of the bank is  240.73 per  share  in the current year. 3. ADBL According to the annual report for the period ended 2077/78, ADBL is the top third bank of Nepal based on book value per share . The book value of the bank is  238.55 per share  in the current year. 4. EBL Accordin...

Top 5 Banks of Nepal in terms of EPS : what is EPS? : In this blog, you will know about the top bank of Nepal based on EPS. Table of content Top 5 Banks based on Earning per shares Conclusion What is Earning per share? Earning per share  is calculated by dividing net profit after tax by several outstanding shares. it indicates how much money is earned by one stock. earning per share is a figure describing a company's profit per outstanding share of stock, calculated on a quarterly or annual basis. Top 5 Banks based on Earning per shares 1. NABIL According to the Annual report for the period ended 2077/78, Nabil Bank is the number one bank based on earnings per share. Nabil bank has 32.54 earnings per share in the current year. 2.  ADBL According to the Annual report for the period ended 2077/78, ADBL is the top second bank based on earnings per share. ADBL has 30.65 earnings per share in the current year. 3 . NICA According to the Annual report for the period ended 2077/78, ...