# Category Budgeting and Forecasting

All concepts and resources related to financial, planning and analysis

## Agency by Necessity: Explained with Super Simple Examples

So, lets assume that you had invested in a liquid mutual fund, which is often used for parking short term funds. And due to a sudden drop in the value of the underlying, the investment amount was due to crash.…

## True discount formula-Explained with Simple Examples

So, many a times we are faced with a situation wherein due to the mathematical complexities the true value received or given is not clear. One such regular complexity of finance in daily life is experienced in the concept of…

## Difference between factoring and bill discounting

So, imagine you are running a business and you have sold your products or services on credit. And the payments are due to come in the coming few months. However, you need funds to manage your working capital expenses like…

## Sampling Error Formula – With Real Life Examples

The sampling error formula is Sampling Error = Z x (σ /√n), is a statistical formula and tool used to calculate the overall inaccuracy of the calculation.  Of course, when I just discuss the formula then it appears complicated. However,…

## Capitalisation of average profit method formula- Application and Examples

Often when you see the balance sheet of a company, you will notice a line item showing “Goodwill”. In this article we will discuss on how to calculate goodwill using Capitalisation of average profit method formula. What is Capitalisation of…

## Annual Equivalent Cost- Explained

So the equivalent annual cost is an important metric used in corporate finance used by finance managers to make asset purchase decisions. Hence what it entails is to calculate the NPV of the benefits of using the asset of over…

## Detailed Review of CPA Course Providers and Fees in Pune

Overview Are you considering a career in Accounting and Finance? One certification that can significantly boost your professional prospects is the Certified Public Accountant (CPA) designation. Therefore, in this blog, we will analyse the topic of CPA course fees in…

## CFA Coaching in Bangalore

Introduction In today’s competitive world, acquiring the Chartered Financial Analyst (CFA) designation has become increasingly important for professionals seeking a successful career in the finance industry. However, preparing for the CFA exams can be challenging without proper guidance and coaching.…

## What is the long run objective of financial management?

Financial management plays a crucial role in ensuring the long-term success of any organization. It involves making strategic decisions to optimize financial resources and achieve specific goals. In this article, we will explore two key long-run objectives of financial management:…

## How to do vertical analysis of a balance sheet

Author: Sarthak Bhalerao Table of Contents What is Vertical Analysis? Vertical analysis is an accounting tool that enables proportional analysis of financial statements. While performing a vertical analysis, every line item on a financial statement is entered as a percentage…

## How to calcualte Degree of Financial Leverage?

Author: Sarthak Bhalerao Table of Contents What is Degree of Financial Leverage? A Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s earnings per share (EPS). The DFL takes into consideration the fluctuations…