Finance

Market capitalization is theoretically the market value of the equity of a company or corporation. It represents the equity side of the total valuation of a company. Market cap can be used as a useful tool in the total market valuation analysis. However, unlike the common notion, it does not represent the total market value […]

Companies obtain capital from two sources, including equity and debt. Equity is the finance that comes from a company’s shareholders. Usually, this equity is in the form of shares or preferred stocks. These shares may also come with voting rights. Debt, on the other hand, is finance received from third parties. It usually carries an

Companies and businesses need finance to operate. Some companies have affluent owners that provide them with this finance. Others can raise finance through their existing shareholders. Similarly, some companies can also generate funds from the public. However, small companies and startups usually don’t have these facilities. For these companies, obtaining finance is a substantial challenge.

Secured bonds come with a pledge of collateral. Unsecured bonds are issued by entities with higher credit ratings and do not offer collateral. Investors can analyze both types of bonds for the perceived risks. Both types of bonds carry a varying degree of default risk. Thus, the return on investment will also be different. Let

Free cash flow (FCF) is an important metric to analyze the financial performance of a firm. It is often considered an equally important measure as the net profit of a firm. There are several ways to calculate the free cash flow of the firm. Similarly, there are various versions of the cash flow that are

The EBITDA coverage ratio is one of several ratios that is used to evaluate a company’s financial strength to meet its debt obligations. This ratio is one of the finest metrics to analyze a company’s financial durability. The EBITDA coverage considers the cash flows of a company rather than operating profit. Thus, it offers a