Technical Content Writing Services in India

To understand the business from an investment perspective, there are always two schools of thought that come to mind, people who follow fundamental analysis and those who follow technical analysis . However some investors do both analysis to understand the business from every aspect. Let us understand both in detail. Fundamental analysis Fundamental analysis is a method or approach to understand business deeply and separate the daily short term noise in the stock prices to concentrate the underlying business performance. Fundamentally strong companies' stock prices tend to appreciate in the long run and therefore create wealth for the investors. Fundamental analysis is generally done from a macro to micro perspective in order to identify securities which are not correctly priced by the market. An investor can perform fundamental analysis just by looking at the overall state economy, bond value, interest rate etc. A fundamental analyst creates a model to estimate the company’s shar...

Ratio analysis is a method of quantitative analysis for gaining better insight of any company’s liquidity position, profitability and operating performance by studying financial instruments such as balance sheet, cash flow statement and income statement. It is one of the most important methods in fundamental analysis . Investors and financial analysts use this method to analyze financial health of the company. Ratios are used for comparisons between the companies and likely to measure company’s performance in the history and in the near future. Types of Ratios in Ratio Analysis: Liquidity Ratio: It is used to find debtors ability to pay off the current liability obligations without raising external capital or funding. With liquidity ratios, current liabilities are most often analyzed in relation to liquid assets.   Solvency Ratio:  It is used to measure the long-term health of any business. Solvency ratios can prove that business firms can pay their debt obligations. It is al...