Tag: Finance

Understanding the Net Worth of a Company Net Worth, also referred to as Shareholders’ Equity, represents the value left for the owners of a company after all liabilities are subtracted from total [Read More...]

The Time Value of Money (TVM) means money today is worth more than the same amount in the future because it can be invested and grow. Future Value (FV) shows how much money today will be worth in the [Read More...]

What is a Derivative? Definition: A derivative is a financial contract that derives its value from an underlying asset, such as stocks, bonds, commodities, or currencies. Parties Involved: Buyer [Read More...]

Time Value of Money Definition: Money today is worth more than the same amount in the future due to inflation and the opportunity cost of not having the money now. Example: ₹1,000 today invested at [Read More...]

What is Effective Tax Rate (ETR)? The Effective Tax Rate (ETR) measures the percentage of a company's pre-tax income that it pays in taxes. Unlike the statutory tax rate, which is the legal tax rate [Read More...]

What is COGS (Cost of Goods Sold)? COGS represents the direct costs associated with producing goods or delivering services sold by a business. It includes the expenses for materials, labor, and other [Read More...]

In accounting, PPE (Property, Plant, and Equipment) refers to tangible, long-term assets that are used by a company in its operations to generate revenue. These assets are not intended for resale but [Read More...]

Finance KPIs Price to Earnings Ratio (P/E Ratio) Formula: Market Price per Share / Earnings per Share (EPS) Description: Indicates how much investors are willing to pay per dollar of earnings, often [Read More...]

Financial Planning and Analysis (FP&A) is a key function in corporate finance that focuses on budgeting, forecasting, and financial analysis to support strategic decision-making. It is essential [Read More...]

A Statutory Audit Report in Nepal is a mandatory report issued by a licensed auditor after reviewing a company's financial statements to ensure compliance with the legal and regulatory requirements [Read More...]