Is Finance a Good Career Path?

Alanmoul0909 Jun, 2023Finance

Okay, you may now recite the famous quote from Jerry Maguire, a box office success. Although the character played by Cuba Gooding Jr. in the movie is a football player rather than a driven investment banker, the statement nonetheless applies to anybody interested in a career in finance, especially high finance.

What is Racketeering?

Alanmoul0908 Jun, 2023Finance

A racket is a criminal organisation created with the primary objective of generating ill-gotten gains. The phrase is frequently used to refer to the type of illegal activity that the Racketeer Influenced and Corrupt Organisations Act (RICO) prohibits. Federal law prohibits using funds gained via certain illegal actions, or the results of those crimes, to purchase or run a firm in the United States. According to the law, it is also illegal to plan to commit any of the aforementioned crimes or to do anything that would make them easier for a business to do. Racketeering includes acquiring a business dishonestly, operating a business using funds obtained dishonestly, and using a business to carry out illegal activities.

Quick Ratio Formula

Alanmoul0907 Jun, 2023Finance

The fast ratio is seen to be more cautious than the current ratio, which uses all current assets to cover all current obligations. A company's most liquid assets, such as cash and cash equivalents, marketable securities, and accounts receivable, are used to calculate the quick ratio by dividing the total of its current liabilities by those. Current assets like prepaids and inventories that cannot easily be converted into cash or that would require significant discounts to be liquidated are specifically excluded. If the ratio is high, the company is financially stable and solvent; if it is low, it is likely to struggle to make debt payments.

Alphabet’s GOOG vs GOOGL Stock

Alanmoul0907 Jun, 2023Finance

It guaranteed that Larry Page and Sergey Brin would retain a majority of the voting rights. The founders of a firm that goes public could progressively lose control of the company when fresh shares are issued and sold. The founders of Alphabet share the ambition of several other digital billionaires to retain ownership of their businesses. Markets or investors may lack patience and prioritise short-term rewards above long-term plans. Brin and Page were able to benefit from the liquidity of the public market without ceding control of the firm by dividing the shares.

Merchant Banking – Meaning, Functions, and Services

Alanmoul0906 Jun, 2023Finance

Merchant banks are private, non-bank financial firms that specialize in providing foreign financing to large enterprises. The banks in question are different from other sorts of financial companies. The vast majority of their products are therefore not intended for the general public. Merchant banks focus primarily on business customers, while they may provide certain banking services to high-net-worth individuals.

Interest Coverage Ratio (ICR)

Alanmoul0906 Jun, 2023Finance

When a business is having trouble making ends meet, it may be obliged to borrow more money or spend money that might be better saved for unforeseen circumstances or invested in long-term assets. When assessing a company's health and direction, it can be helpful to look at interest coverage ratios across time rather than just one ICR.

Cash Conversion Cycle

Alanmoul0906 Jun, 2023Finance

One such numerical metric that can be used to assess how well a company's management and operations are operating is the CCC. Greater research and examination should be done on CCC levels that have been rising, whereas readings that have been declining or remaining stable over a variety of time periods are encouraging. Keep in mind that CCC is only applicable to industries where inventory management plays a significant role in daily operations. Revenue and cost of goods sold (COGS) on the income statement reflect stock checks made at the start and end of the reporting period.

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