Blog Valuation

Value at Risk (VAR)- Definition, Calculation Methodologies and Advantages

Have you ever wondered how do portfolio managers compare the risk associated with two different asset classes? Or how do they calculate the risk of a portfolio comprising of different asset classes? For example, risk of a fixed income [...]


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WACC Formula, Definition and Uses – Download WACC Calculator

WACC Definition: WACC is the rate used to discount the future cash flows and terminal value to get present value. It is the return expectations of all providers of capital including debt and equity holders for investing in a project.  [...]


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An Overview of Commodities

Commodity is an economic good or service that has monetary utility and does not generate cash. There are two types of commodities which are: Hard commodities: include gold, silver, nickel, copper, steel, lead, oil, natural gas, coal etc. Soft commodities: are [...]


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What is Operating and Non-Operating Income and Expenses- Full Explanation, Formula, & Example

Income statement usually known as Profit & Loss Statements, consist of various heads of operating as well as non-operating incomes and expenses for specified period e.g. quarter ended 20xx or Financial year ended 20xx etc. The format of income [...]


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Real Estate or Mutual Funds: Where do I invest?

Investment is a lifelong objective of every Individual to meet needs that arise in future. This brings us to the question – “Where to Invest?”. Also, when investing our hard-earned savings, the first thing that comes to our mind [...]


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Depreciation Methods – 4 Types of Depreciation, Formula & Calculation

Company incurs cost related to tangible assets. These assets are called depreciable assets. The cost of tangible asset is not reflected fully in the current year’s income statement. It is reported as depreciation expense in the income statement over [...]


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ROIC and ROCE – How to Use, Calculate and its differences

Return on Invested Capital (ROIC) ROIC means Return on Invested Capital and it is a profitability ratio which aims at measuring the return (expressed in percentage) that investors of a company earn from the capital that they have invested. The [...]


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Inventory Valuation for Investors

Inventory Valuation for Investors

Definition “Inventory” is the term used for the goods intended for sale or raw materials which will be used in producing the finished goods. “Inventory valuation” is a process of assigning a monetary value to inventory at the end of [...]


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LIFO vs FIFO? How we use it for inventory valuation?

Managing a business is quite difficult and to remain competitive, companies started giving more emphasis on inventory valuation. Inventory is one of the major components of current assets of any business. Inventories typically include the value of raw material, [...]


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What is Inventory

What is Inventory valuation?

Inventory valuation is a process to measure cost of unsold goods and assigning a monetary value to items in inventory at the end of the reporting period. It estimates inventories true worth, based on how inventory units are sold. [...]


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