FantasticFinance

Monday, 29 January 2024

Book Value Vs Liquidation Value

Book value simply means = Total assets - Total liabilities/Number of outstanding equity shares in market. It indicates the residual left for equity shareholders after paying of firm's creditors. As a fundamental analyst i personally prefer liquidation value per share as it is an acid test of final value left for shareholders if the firm stops working the same day. Key points to remember while calculating assets and liabilities of any firm - True value of fixed assets, for example we depreciate land and building in accounting but in real practice land appreciates its value with the passage of time. Therefor for all such assets we have to consider this phenomenon. Real value of inventory. Liabilities company not obliged to return like unsecured loans and debts. Anything which is an abnormal income or expenses. This will give the true liquidation value of the present on the basis of which i can forecast the future liquidation value then divide the liquidation value with the number of outstanding shares in the market. Formula - Real value of assets - Real necessary liabilities/number of outstanding equity shares in the market. To make my analysis more effective for future i also calculate the diluted liquidity value per share of the firm by assuming that company has issues all its authorized equity shares. Formula - Real value of assets - Real necessary liabilities/number of outstanding equity shares in the market + number of equity shares company still eligible to issue. Diluted Liquidation value per share is an ultimate test of company's financial fundamentals and if it is more than the market price of share then that stock is a must buy and can show good growth in future. My weblinks - Linkedin - www.linkedin.com/in/mohit-pandey-b9254434 Blog - https://fanfin84.blogspot.com

Tuesday, 17 October 2023

Financial analysis mcq with answers

Finance is as dynamic as life and demography and it requires continuous upgradation and research is a field which keeps a livewire in this industry. Here is another paper by me to help the aspirants of finance officer and its completely free and i hold its copyright you can share this paper to others for free but if you try to sell it then it will be against my consent. Anyone who wants to get trained about the different dimensions of finance like - credit analysis, financial analysis, fixed income securities etc. can email me at mohit00sb@gmail.com keep in my touch to get updates on different aspects of finance. My LinkedIn - https://www.linkedin.com/in/mohit-pandey-b9254434/ My blog - https://fanfin84.blogspot.com/2023/08/mcq-paper-credit-

Sunday, 17 September 2023

MCQ HOME LOAN

Monday, 4 September 2023

Monday, 21 August 2023

MCQ paper Credit officer/credit analyst

Finance is as dynamic as life and demography and it requires continuous upgradation and research is a field which keeps a livewire in this industry. Here is another paper by me to help the aspirants of credit officer and its completely free and i hold its copyright you can share this paper to others for free but if you try to sell it then it will be against my consent. Anyone who wants to get trained about the different dimensions of finance like - credit analysis, financial analysis, fixed income securities etc. can email me at mohit00sb@gmail.com keep in my touch to get updates on different aspects of finance. Regards Mohit Pandey Linkedin - https://www.linkedin.com/in/mohit-pandey-b9254434/ #creditofficer #creditmanagement #financeofficer #loanofficer

Alternative Investment Tools - Invoice Discounting

Alternative Investment – Invoice Discounting (Introduction) – When it comes to alternative investment the first flashes in our minds are metals, commodities etc. but this concept I think is old and broad. Investment is much older than modern traditional investments in stock markets and its other dimensions. Metals and commodities are the most popular modes of alternative investment but they are not the only options. There are alternatives to traditional and popular forms of alternative investment and if done with proper analysis it is much safer and ensures higher guaranteed returns and that too in short term and midterm (in some cases for long term also). Now what is Invoice discounting? For example, Mr. X runs a glass bottle manufacturing business in the domestic market of his city and one day a representative from Pepsi paid a visit to him. He asked him to supply 10,00,000 bottles for Pepsi after 3 months but he refused to pay any advance money. To validate this contract on monetary terms he agreed to issue an invoice of complete payment on delivery of consignment after 3 months. Mr. X made the following financial analysis of this contract – Selling price or money he is receiving on every bottle – 5 Cost if manufacturing every bottle – 3.5 Net profit per bottle – 5-3.5 = 1.5 rupee Overall profit on consignment – 1.5 * 1000000 = 1,500,000 INR (Indian National Rupees) But Mr. X required money right now for material, labor etc. to complete this order and since this order is big and he is a small manufacturer with low credit history he has no traditional mode of financing available up his sleeve like – Banks, NBFCs etc. Then he went to Mr. Y who is a domestic level financer who finances small and medium level unorganized business men. Mr. X offers him to take the invoice of rupees 5,000,000 from him right now and provide him 4,500,000 cash instantly and cash the invoice after 3 months. After analysing the below mentioned attributes – · Pepsi being a big company holds substantial creditworthiness in the market. · The past track record of on time and quality delivery of bottles by Mr.X in the market. · Other legal aspects related to the invoice. Mr. Y accepts the invoice and provides Mr. X with the desired money. When Mr. Y utilized the invoice on completion of time, he received the full amount and his return of investment war – 500000/4500000 = 0.11% in one quarter. This is how the invoice discounting works. In my other posts I will elaborate the analysis of invoice discounting and the parameters on which the decision of acceptance or rejection of invoice depends. If someone wants to take my online training classes for CFA/MBA-Finance or a special training course on financial/economic/market research and analysis can email me on mohitfin6@gmail.com. Self-created and own work of Mohit Pandey #alternativeinvestments #creditmanagement #creditrisk #creditratings #credit #financing #invoicediscounting #invoicemanagement #financialanalysis #creditanalysis #creditanalyst Mylinkedin profile - https://www.linkedin.com/in/mohit-pandey-b9254434/

Sunday, 25 September 2016

GDP or Gross Domestic product is gross production of any economy represented in monetary terms. I t is collective earning of an economy and the first denominator of econometric analysis models.

Take a simple example suppose X is a big business man and he has variety of business and he does job also.

The list of his earning sources are mentioned below.

Hotel
Agricultural Land
Job
Medical Shop
Petrol Pump

Attributes	Annual Earnings	% share	Rank as per Gross earnings
Hotel	600000	0.12	3
Agriculture	1500000	0.3	1
Job	400000	0.08	4
Medical Shop	1000000	0.2	2
Petrol Pump	1500000	0.3	1
Gross Income	5000000	1

Percentage Share Formulae =

Hotel/Gross Earnings
Agriculture/ Gross Earnings
Medical Shop/ Gross Earnings
Petrol Pump/ Gross Earnings

Note – Agriculture and Petrol Pump earnings accounts for highest share of Gross income

Job earnings are lowest

Likewise GDP is gross earnings of different segment of an economy and above mentioned example is the most basic economic model.

The above model doesn’t reflect the true picture as only income is considered and other variables like expenses, taxes etc. as to be taken under consideration about which I will tell you in my future posts.

Facebook Profile –

https://www.facebook.com/profile.php?id=100000587002949

Facebook official fan page –

https://www.facebook.com/mm084?ref=aymt_homepage_panel

Twitter Profile - https://twitter.com/mohitpandey1984

Official Blog - http://mm084.blogspot.in/

Instagram - https://instagram.com/mohit00084/

Wikipedia - https://en.wikipedia.org/wiki/User:Mohit8957

My works –

A Tale Of Ten Candles –

Facebook Link - https://www.facebook.com/A-Tale-Of-Ten-Candles-660646217335128/timeline/

Blog - http://attc084.blogspot.in/