Ashutosh Kumar 
The Debt-Service Coverage Ratio (DSCR) is useful in many areas of economics and business, especially for individuals, businesses, and the government. The ratio tells you how much money the company has on hand to cover its current cash needs and credit obligations. The debt service coverage ratio (DSCR) shows how well a company, project, or
Return on investment, or ROI, is a way to figure out how profitable a purchase is. ROI figures out how useful an investment was by comparing how much you spent on it to how much you made from it. Let’s look at how companies and individual investors use it. What is Return on Investments? Return
In the field of finance, it is important for investors, speculators, business owners, and professional financial analysts to possess a comprehensive and clear understanding of the primary metrics. EBITDA is a critical metric for assessing the financial condition of an organization. The next part looks into the benefits of EBITDA, the methods by which financial
The return on assets (ROA) of a business shows how well it utilizes its assets to make money. ROA is a way for managers, researchers, and investors to figure out how healthy a company’s finances are. What is Return on Assets? Return on Assets (ROA) is a number that shows how profitable a business is
How does your company pay for its activities? That’s what the debt-to-capital number can tell you. This measure can be useful for business owners and investors because it helps them understand the capital structure, solvency, and level of financial leverage of their company. Read our in-depth piece to learn more about debt-to-capital ratio analysis. To
A financial tool that gets its value from something else is called a derivative. Pro traders often buy and sell options to balance risk because their value is based on other assets. But for investors who aren’t very good at what they’re doing, derivatives can make their portfolios much more risky. What is Financial Derivatives?
When two people agree to buy or sell an asset at a certain future date for a price they agree on today, this is called a forward contract. Forward contracts are used in trading and banking. What is Forward Contract? A forward contract is an understanding between two parties that they will buy or sell
Have you ever wished you could get into the stock market and profit from changes in prices? Trading futures and options is the best thing for you if you said yes. You can bet on the future direction of stocks, commodities, currencies, and other things with these powerful trading tools. Besides that, these assets give
It might be a good idea to buy options if you want to add something else to your account besides stocks, mutual funds, or bonds. You may have heard that trading options is hard or that only experienced buyers should do it. Options can help you spread your risk, but they can also make it
Call options are a kind of option that gets more valuable when the price of a stock goes up. These are the most well-known types of options. They let the owner lock in a price to buy a certain company by a certain date. People like call options because they can gain value quickly if