Internal growth rate (IGR) is the measure of the growth of a business without external financing. It is driven by the net income and retained earnings of a business. Let us discuss what is IGR and how to calculate it. What is Internal Growth Rate? Internal growth rate (IGR) is the level of growth achieved […]
What is Internal Growth Rate and How to Calculate It? Read More »
Sustainable growth rate (SGR) and internal growth rate (IGR) are closely linked business growth concepts. SGR is the growth rate that a business can sustain without external financing. While IGR is the growth that can be achieved with internal resources. Let us discuss what are sustainable growth and internal growth rates and the key differences
Sustainable Growth Rate Vs Internal Growth Rate – What are the Differences? Read More »
Assets under management or AUM are the funds managed by an individual or an institute. These are the total assets managed by the fund managers for their investors. AUM is the indicator of the size and performance of a fund like a mutual fund or hedge fund. Investors and fund managers use this metric as
What Does Asset Under Management (AUM) Mean? Read More »
A credit default swap is a financial derivative to swap the credit risk of a debt instrument. It can be used to transfer the default risk of the borrower for any type of debt instrument. Let us discuss what is credit default swap, how it works, and its pros and cons for all parties involved.
What is Credit Default Swap (CDS)? How Does It Work? Read More »
Net assets or net asset value is a widely used concept in business valuations and investment fund appraisals. Investors can use NAV as a performance indicator of a mutual fund or ETF. It is the difference between the assets and liabilities of a business or a fund. Let us discuss what is NAV, how to
What is Net Asset Value (NAV) and How to Calculate it? Read More »
The average true range (ATR) is a technical indicator to give you an idea of how much the price of an asset can move. However, it wouldn’t indicate the direction of the move for you. ATR is a useful metric to assess the price volatility of assets for a given timeframe. It can be used
What is Average True Range (ATR) and How to Calculate It? Read More »
The cost-to-income or efficiency ratio of a bank is useful efficiency and profitability ratio. It links operating expenses to operating income generated by a business. Let us discuss what is a cost-to-income ratio and why it is important for banks. What is the Cost-to-Income Ratio? The cost-to-income ratio (CIR) is an efficiency metric that compares
What is the Cost-to-Income Ratio and Why It is Important for Banks? Read More »
What is Net Present Value? The net present value (NPV) refers to the discounted present value of future cash flows (positive and negative) from an investment for a specified period (usually until maturity). In simple words, it is the sum of all future cash flows discounted to the present terms. In practice, it is the
NPV Vs ROI Vs EVA – What are the Differences? Read More »
Internal and external sources of financing help businesses fulfill their capital requirements. Both types of financing offer discrete benefits and some limitations to the business. Let us discuss what are external and internal sources of financing and their key differences. What are Internal Sources of Financing? Internal sources of financing are the financial sources of
Internal Vs External Sources of Finance – Key Differences Read More »
Mutual funds and hedge funds are pooled investment vehicles. However, both of these types attract different types of investors and follow contrasting investment strategies. Let us discuss what are mutual funds and hedge funds and their key differences. What is a Mutual Fund? A mutual fund is a pooled investment that collects money from several
Mutual Funds Vs Hedge Funds: What Are the Differences? Read More »
