A company’s efficiency can be measured in many ways. One of the most popular metrics used is the working capital turnover ratio. This ratio signifies the rate of usage of the working capital against sales. 

Profit Before Tax (PBT) is a commonly used term in finance. The measure gives the value of profits a company has earned before paying any corporate taxes to the Government. 

All companies need to track what is selling and the rate at which it is selling. This understanding helps to strategise further and increase production. The inventory turnover ratio is one ratio that helps investors analyse the overall inventory picture of a company. 

Minority interest represents a stake in a company where more than 50% of the share capital is owned and controlled by one individual/ entity.

Cash flow from operating activities is one of the major sections of the cash flow statement that depicts the overall cash flow from business activities. 

Businesses can use various methods to determine their capital allocation. This helps them plan and organise their resources. Capital budgeting is one of the most popular methods to do this. 

When you invest in mutual funds or any other pooled investment avenue, you will come across the term ‘expense ratio’. Though expressed as a percentage, the ratio depicts the overall expenses on the fund you have invested in. 

The dividend yield is a commonly used financial ratio that helps investors analyse the returns they generate based on the stock’s price.

Asset management companies, or AMCs as they are popularly called, manage assets on behalf of investors. 

An index helps in monitoring any changes in the stock market. Learn more about its types, ways indices select stocks, and index investing.