Tryst With Liquidity Ratios

We at Investorwhiz we want you to be an intelligent, well-informed investor who likes to go beyond what those brokers are handing out day in, day out. This time, we are taking you on yet another short tutorial on liquidity ratios that will expand your knowledge and understanding of those numbers on Balance- Sheet.

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Understanding Working Capital

Working capital management is extremely important for companies. It is the main determinant of the liquidity position of a company. Profitable companies can go bankrupt due to the paucity of liquidity. In this article, we will look what are the main components of the working capital cycle, what are the ratios associated with it and what do they mea

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Kelly Formula: Our Secret to Maximise Profits and Minimise Losses

Kelly formula enables us to find out how much of our available cash should be given out in a given bet. In the context of investments, this formula helps us to determine what fraction of our portfolio should we bet on a new stock. In other words, it is used to determine the optimal size of your bet.

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ROE: Why It is One of the Most Important Ratios

ROE is a very significant profitability ratio that is considered closely for monitoring the performance of an entity. This ratio figures amongst the most used by analysts as well as investors in evaluating stocks and forecasting their performances. In this article, we closely examine why this ratio is so important, how it is a proxy for the moat of a company and what are its various pitfalls.

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