Asset Turnover is a metric that investors and companies can use to determine how efficiently a business uses its assets to create revenue. Asset Turnover is a ratio of the value of a company’s sales or revenues relative to the value of its assets. It can be calculated simply by dividing sales or revenue by total assets. The higher an asset turnover ratio for a company, the better that company is performing - since it implies that the company is generating a high level of sales and revenue per unit of assets. Continue reading...
Turnover ratio is a term that can be used in reference to the rate at which a company goes through its physical inventory, or that a mutual fund sells and replaces its investment holdings. In the context of a company’s inventory of goods, a high turnover ratio is a positive sign. It means that a company is selling plenty of its products and is not wasting money on more warehousing space than it needs. This kind of turnover ratio is calculated as the cost of goods sold in a period divided by the average inventory during that time. In the context of mutual funds and ETFs, turnover ratio is a negative thing if it is high. Continue reading...
Receivables Turnover Ratio gives a snapshot of how well a company does by extending credit. The ratio is computed by putting the number of credit sales over the total amount of outstanding receivables. If a company is not able to efficiently collect on credit that it has extended to its customers or debtors, it will have a low Receivables Turnover Ratio. The top number is the amount of new receivable accounts opened during a period, and the lower number is the total number of outstanding receivable accounts. A much larger bottom number suggests that they are not able to efficiently collect on and close their receivables. Continue reading...
The efficiency ratio is a metric that measures how effectively a company uses its assets and liabilities to run the business smoothly. There are several types of efficiency ratios that can give an analyst insight into a company: accounts receivable turnover, fixed asset turnover, sales to inventory, and and stock turnover ratio. Continue reading...
The better choice might be different for each investor. There is no clear-cut answer to this question, since it will depend on an investor’s unique situation and what’s being offered. If you intend to trade actively, ETFs might be a better choice since they have prices that update minute-to-minute during the day and their trades settle more quickly. If you are just buying and holding an index (see ‘index investing’), an ETF will give you the cost effective means for doing so. You may be able to buy into an ETF with lower initial requirements than a mutual fund, since you can buy one share instead of possibly having to meet a $1,000 minimum initial investment requirement for a mutual fund. Continue reading...
Most index funds are known for using a completely passive strategy to track an index, but some take a more active approach. Some mutual funds track an index by passively using algorithms to buy the shares necessary to build a portfolio which closely replicates an index. Such a fund will have low turnover, will only rebalance slightly based on the market cap or other criteria set forth in the prospectus, and will basically ride out all of the ups and downs of the index in a blind faith for the efficient market hypothesis. Continue reading...
Generally associated with mutual funds and exchange traded funds, the expense ratio represents the total annual management fee. The expense ratio is the annual management fee charged to shareholders by ETFs and mutual funds. The annual fee typically comprises the annual management fee, 12b-1 fees (which are associated with research costs), operating costs, and all other administrative type fees that go into the product. The expense ratio encompasses all of these fees as one percentage. Continue reading...
Mutual funds can be described, categorized, and screened using the various criteria involved in their construction and maintenance. When investors look for mutual funds, it may be useful to incorporate a mutual fund screener from a website. There are many criteria by which you can classify a mutual fund, such as investment style, market capitalizations of stocks in the fund, the industry sector or region in which the fund focuses, as well as the size of the expenses or type of sales load. Is the fund geared toward the short-term or long-term? Does it have a high turnover ratio? Continue reading...
Q2 brought mixed results for major stock indices, with rising volatility and varied performances. Discover how Trend Trader and Swing Trader strategies can help navigate these market fluctuations, and learn about Tickeron's AI technology that gives traders an edge in these uncertain times. Continue reading...
Discover the intricacies of managerial accounting, the backbone of informed business decisions. This guide unravels the essence of managerial accounting, highlighting its role in internal decision-making, planning, and performance tracking. Learn about its key pillars, the differences from financial accounting, and its multifaceted applications in businesses, from product costing to cash flow analysis. Whether you're a business owner, an aspiring accountant, or someone keen on understanding the financial underpinnings of an organization, this article offers a deep dive into the world of managerial accounting, equipping you with the knowledge to navigate the financial landscape of modern organizations. Continue reading...
Discover how Tickeron's AI robot becomes a beacon of profitability in a week of major stock market downturns. Achieving over 70% in transaction success, it navigates the SP500, NASDAQ 100, and Dow Jones declines with unmatched resilience. Embrace the power of sector rotation strategies, dive into the flexibility of adaptive risk management, and unlock the potential of hedge fund-level analysis. This AI robot is not just surviving the volatile market; it's thriving. Explore how it can transform your swing trading experience. Continue reading...
Momentum trading, often described as "buy high, sell higher," is a trading strategy that seeks to capitalize on market volatility and price swings by purchasing securities that are in an uptrend and selling them before they lose momentum. While this approach may appear counterintuitive, it has gained popularity among traders due to its potential for significant short-term profits. In this article, we'll explore the concept of momentum trading, its underlying principles, and its benefits and drawbacks. Continue reading...
All-cap mutual funds invest in companies of all sizes. All-capitalization mutual funds invest in companies without a bias towards the capitalization of the company. In every mutual fund’s prospectus, the stated objective of the fund will be outlined, as well as the agreed-upon asset allocation guidelines. Deviation from these parameters can put fund managers in hot water with regulatory groups like the SEC. Continue reading...
Unlock the secrets of business success with Key Performance Indicators (KPIs)! Delve deep into the world of measurable metrics that guide companies towards their goals. From financial insights to customer satisfaction, KPIs offer a panoramic view of an organization's performance. Discover their types, significance, and how giants like Tesla harness their power. Navigate the intricate landscape of business with data-backed decisions and set your organization on a path to unparalleled success. Continue reading...
Ratio analysis is a fundamental tool in financial analysis that provides valuable insights into a company's financial health. It involves comparing various financial metrics from a company's balance sheet and income statement to evaluate its liquidity, operational efficiency, profitability, and solvency. Ratio analysis is an essential component of fundamental equity analysis, helping investors and analysts make informed decisions about potential investments. In this article, we'll delve into the key aspects of ratio analysis, its types, examples, and how it is applied. Continue reading...
Active trading is the pursuit of returns in excess of market benchmarks. Investors are advised to have a diverse portfolio, to hedge against the risk of seeing future financial plans devastated due to significant losses in one holding. When attempting to diversify, investors will hear from the increasingly popular camp which believes that the best strategy is to use only passive index funds, which follow indexes using computer algorithms and have low expense ratios. Continue reading...
Explore the Vanguard Total Stock Market ETF (VTI), a diversified fund with 3,900+ stocks, reflecting the entire U.S. equity market. Benefit from its low 0.03% expense ratio, market cap-weighted index, and top holdings like Apple & Microsoft. A go-to for cost-effective investment. #VTI #Investing Continue reading...
Explore the All-Ordinaries Stock Index, Australia's key market benchmark, representing the top 500 corporations. Uncover its rich history, inclusion criteria, and calculation method. A vital tool for investors and economists, it's a barometer of economic health. Discover more now! Continue reading...
Ever wondered why Warren Buffett champions index funds for the average investor? Unravel the allure of these passive investment giants and discover how they could be the key to long-term financial growth. Continue reading...