Online
| Explore Forums | Browse Stock Messages | Hot Discussions | Top rated Messages | Top Boarders | |
|
|
|
You are here : Moneycontrol  MMB Market View |
| The latest messages in different topics under Market View are displayed on this page |
Market View
Tracked by: 0 Boarder
Financial Leverage Ratios
Financial leverage ratios provide an indication of the long-term solvency of the firm. Unlike liquidity ratios that are concerned with short-term assets and liabilities, financial leverage ratios measure the extent to which the firm is using long term debt.
The debt ratio is defined as total debt divided by total assets:
Debt Ratio = Total Debt / Total Assets
The debt-to-equity ratio is total debt divided by total equity:
Debt-to-Equity Ratio = Total Debt / Total Equity
Debt ratios depend on the classification of long-term leases and on the classification of some items as long-term debt or equity.
The times interest earned ratio indicates how well the firm's earnings can cover the interest payments on its debt. This ratio also is known as the interest coverage and is calculated as follows:
Interest Coverage = EBIT / Interest Charges
where EBIT = Earnings Before Interest and Taxes...
In reply to:
Financial Ratios
Posted by :
Infy_fan_always
Asset Turnover Ratios
Asset turnover ratios indicate of how efficiently the firm utilizes its assets. They sometimes are referred to as efficiency ratios, asset utilization ratios, or asset management ratios. Two commonly used asset turnover ratios are receivables turnover and inventory turnover.
Receivables turnover is an indication of how quickly the firm collects its accounts receivables and is defined as follows:
Receivables Turnover = Annual Credit Sales / Accounts Receivable
The receivables turnover often is reported in terms of the number of days that credit sales remain in accounts receivable before they are collected. This number is known as the collection period. It is the accounts receivable balance divided by the average daily credit sales, calculated as follows:
Average Collection Period = Accounts Receivable / (Annual Credit Sales / 365)
The collection period also can be written as:
Average Collection Period = 365 / Receivables Turnover
Another major asset turnover ratio is inventory turnover. It is the cost of goods sold in a time period divided by the average inventory level during that period:
Inventory Turnover = Cost of Goods Sold / Average Inventory
The inventory turnover often is reported as the inventory period, which is the number of days worth of inventory on hand, calculated by dividing the inventory by the average daily cost of goods sold:
Inventory Period = Average Inventory / (Annual Cost of Goods Sold / 365)
The inventory period also can be written as:
Inventory Period = 365 / Inventory Turnover
Other asset turnover ratios include fixed asset turnover and total asset turnover. 
Tracked by: 0 Boarder
Asset Turnover Ratios
Asset turnover ratios indicate of how efficiently the firm utilizes its assets. They sometimes are referred to as efficiency ratios, asset utilization ratios, or asset management ratios. Two commonly used asset turnover ratios are receivables turnover and inventory turnover.
Receivables turnover is an indication of how quickly the firm collects its accounts receivables and is defined as follows:
Receivables Turnover = Annual Credit Sales / Accounts Receivable
The receivables turnover often is reported in terms of the number of days that credit sales remain in accounts receivable before they are collected. This number is known as the collection period. It is the accounts receivable balance divided by the average daily credit sales, calculated as follows:
Average Collection Period = Accounts Receivable / (Annual Credit Sales / 365)
The collection period also can be written as:
Average Collection Period = 365 / Receivables Turnover
Another major asset turnover ratio is inventory turnover. It is the cost of goods sold in a time period divided by the average inventory level during that period:
Inventory Turnover = Cost of Goods Sold / Average Inventory
The inventory turnover often is reported as the inventory period, which is the number of days worth of inventory on hand, calculated by dividing the inventory by the average daily cost of goods sold:
Inventory Period = Average Inventory / (Annual Cost of Goods Sold / 365)
The inventory period also can be written as:
Inventory Period = 365 / Inventory Turnover
Other asset turnover ratios include fixed asset turnover and total asset turnover....
In reply to:
Financial Ratios
Posted by : Infy_fan_always
Liquidity Ratios
Liquidity ratios provide information about a firm's ability to meet its short-term financial obligations. They are of particular interest to those extending short-term credit to the firm. Two frequently-used liquidity ratios are the current ratio (or working capital ratio) and the quick ratio.
The current ratio is the ratio of current assets to current liabilities:
Current Ratio = Current Assets / Current Liabilities
Short-term creditors prefer a high current ratio since it reduces their risk. Shareholders may prefer a lower current ratio so that more of the firm's assets are working to grow the business. Typical values for the current ratio vary by firm and industry. For example, firms in cyclical industries may maintain a higher current ratio in order to remain solvent during downturns.
One drawback of the current ratio is that inventory may include many items that are difficult to liquidate quickly and that have uncertain liquidation values. The quick ratio is an alternative measure of liquidity that does not include inventory in the current assets. The quick ratio is defined as follows:
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
The current assets used in the quick ratio are cash, accounts receivable, and notes receivable. These assets essentially are current assets less inventory. The quick ratio often is referred to as the acid test.
Finally, the cash ratio is the most conservative liquidity ratio. It excludes all current assets except the most liquid: cash and cash equivalents. The cash ratio is defined as follows:
Cash Ratio = (Cash + Marketable Securities) \ Current Liabilities
The cash ratio is an indication of the firm's ability to pay off its current liabilities if for some reason immediate payment were demanded.
Tracked by: 0 Boarder
Liquidity Ratios
Liquidity ratios provide information about a firm's ability to meet its short-term financial obligations. They are of particular interest to those extending short-term credit to the firm. Two frequently-used liquidity ratios are the current ratio (or working capital ratio) and the quick ratio.
The current ratio is the ratio of current assets to current liabilities:
Current Ratio = Current Assets / Current Liabilities
Short-term creditors prefer a high current ratio since it reduces their risk. Shareholders may prefer a lower current ratio so that more of the firm's assets are working to grow the business. Typical values for the current ratio vary by firm and industry. For example, firms in cyclical industries may maintain a higher current ratio in order to remain solvent during downturns.
One drawback of the current ratio is that inventory may include many items that are difficult to liquidate quickly and that have uncertain liquidation values. The quick ratio is an alternative measure of liquidity that does not include inventory in the current assets. The quick ratio is defined as follows:
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
The current assets used in the quick ratio are cash, accounts receivable, and notes receivable. These assets essentially are current assets less inventory. The quick ratio often is referred to as the acid test.
Finally, the cash ratio is the most conservative liquidity ratio. It excludes all current assets except the most liquid: cash and cash equivalents. The cash ratio is defined as follows:
Cash Ratio = (Cash + Marketable Securities) \ Current Liabilities
The cash ratio is an indication of the firm's ability to pay off its current liabilities if for some reason immediate payment were demanded.
...
In reply to:
Financial Ratios
Posted by : Infy_fan_always
Liquidity Ratios
Liquidity ratios provide information about a firm's ability to meet its short-term financial obligations. They are of particular interest to those extending short-term credit to the firm. Two frequently-used liquidity ratios are the current ratio (or working capital ratio) and the quick ratio.
The current ratio is the ratio of current assets to current liabilities:
Current Ratio = Current Assets / Current Liabilities
Short-term creditors prefer a high current ratio since it reduces their risk. Shareholders may prefer a lower current ratio so that more of the firm's assets are working to grow the business. Typical values for the current ratio vary by firm and industry. For example, firms in cyclical industries may maintain a higher current ratio in order to remain solvent during downturns.
One drawback of the current ratio is that inventory may include many items that are difficult to liquidate quickly and that have uncertain liquidation values. The quick ratio is an alternative measure of liquidity that does not include inventory in the current assets. The quick ratio is defined as follows:
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
The current assets used in the quick ratio are cash, accounts receivable, and notes receivable. These assets essentially are current assets less inventory. The quick ratio often is referred to as the acid test.
Finally, the cash ratio is the most conservative liquidity ratio. It excludes all current assets except the most liquid: cash and cash equivalents. The cash ratio is defined as follows:
Cash Ratio = (Cash + Marketable Securities) \ Current Liabilities
The cash ratio is an indication of the firm's ability to pay off its current liabilities if for some reason immediate payment were demanded.
Tracked by: 0 Boarder
Liquidity Ratios
Liquidity ratios provide information about a firm's ability to meet its short-term financial obligations. They are of particular interest to those extending short-term credit to the firm. Two frequently-used liquidity ratios are the current ratio (or working capital ratio) and the quick ratio.
The current ratio is the ratio of current assets to current liabilities:
Current Ratio = Current Assets / Current Liabilities
Short-term creditors prefer a high current ratio since it reduces their risk. Shareholders may prefer a lower current ratio so that more of the firm's assets are working to grow the business. Typical values for the current ratio vary by firm and industry. For example, firms in cyclical industries may maintain a higher current ratio in order to remain solvent during downturns.
One drawback of the current ratio is that inventory may include many items that are difficult to liquidate quickly and that have uncertain liquidation values. The quick ratio is an alternative measure of liquidity that does not include inventory in the current assets. The quick ratio is defined as follows:
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
The current assets used in the quick ratio are cash, accounts receivable, and notes receivable. These assets essentially are current assets less inventory. The quick ratio often is referred to as the acid test.
Finally, the cash ratio is the most conservative liquidity ratio. It excludes all current assets except the most liquid: cash and cash equivalents. The cash ratio is defined as follows:
Cash Ratio = (Cash + Marketable Securities) \ Current Liabilities
The cash ratio is an indication of the firm's ability to pay off its current liabilities if for some reason immediate payment were demanded....
In reply to:
Financial Ratios
Posted by : Infy_fan_always
Financial ratios are useful indicators of a firm\\`s performance and financial situation. Most ratios can be calculated from information provided by the financial statements. Financial ratios can be used to analyze trends and to compare the firm\\`s financials to those of other firms. In some cases, ratio analysis can predict future bankruptcy.
Financial ratios can be classified according to the information they provide. The following types of ratios frequently are used:
* Liquidity ratios
* Asset turnover ratios
* Financial leverage ratios
* Profitability ratios
* Dividend policy ratios
Tracked by: 0 Boarder
Financial ratios are useful indicators of a firm\\`s performance and financial situation. Most ratios can be calculated from information provided by the financial statements. Financial ratios can be used to analyze trends and to compare the firm\\`s financials to those of other firms. In some cases, ratio analysis can predict future bankruptcy.
Financial ratios can be classified according to the information they provide. The following types of ratios frequently are used:
* Liquidity ratios
* Asset turnover ratios
* Financial leverage ratios
* Profitability ratios
* Dividend policy ratios
...
Tracked by: 0 Boarder
Tata Motors scraps convertible share issue
MUMBAI (Reuters) - Tata Motors Ltd, India's top vehicle maker, said on Wednesday it would scrap a planned 30 billion rupees ($686 million) convertible preference share issue due to weak stock markets and instead raise funds by selling some investments.
However the plan to sell rights shares worth 42 billion rupees stands, said the company, which is raising money to fund its $2.3 billion acquisition of Jaguar and Land Rover from Ford Motor Co.
The board of directors decided on the move, "taking into account the current situation in the capital markets and the change in level of prices in the stock markets since May 2008," it said in a statement.
Tata Motors shares, which ended 0.2 percent up at 424.05 rupees in the Mumbai market, are down 27 percent since May 29 when it announced the fund raising plan. The main share index has slid 10 percent during the period.
The company said it plans to sell its investments in a phased manner, preferably to group firms, at prevailing market prices over the next 6-8 months.
.The company, part of the conglomerate Tata group, said in July it had sold a 24 percent stake in its auto component unit to an associate firm and booked a profit of $27 million.
Tata Motors had planned to raise up to 72 billion rupees through three simultaneous but unlinked securities issues but now plans to go ahead only with the sale of two classes of rights shares, it said.
Funds raised through share sales in India in the first six months of 2008 fell 66 percent from a year earlier to $5.85 billion hurt by falling stock markets, Thomson Reuters data showed. The main share index is down 28 percent in 2008.
Hindalco Industries, India's top aluminium maker, last week said it would offer more rights shares than planned to after the stock market slide soured pricing. It hopes to raise $1.2 billion.
v.krishnamoorthy...
Tracked by: 0 Boarder
Tata Motors scraps convertible share issue
MUMBAI (Reuters) - Tata Motors Ltd, India's top vehicle maker, said on Wednesday it would scrap a planned 30 billion rupees ($686 million) convertible preference share issue due to weak stock markets and instead raise funds by selling some investments.
However the plan to sell rights shares worth 42 billion rupees stands, said the company, which is raising money to fund its $2.3 billion acquisition of Jaguar and Land Rover from Ford Motor Co.
The board of directors decided on the move, "taking into account the current situation in the capital markets and the change in level of prices in the stock markets since May 2008," it said in a statement.
Tata Motors shares, which ended 0.2 percent up at 424.05 rupees in the Mumbai market, are down 27 percent since May 29 when it announced the fund raising plan. The main share index has slid 10 percent during the period.
The company said it plans to sell its investments in a phased manner, preferably to group firms, at prevailing market prices over the next 6-8 months.
.The company, part of the conglomerate Tata group, said in July it had sold a 24 percent stake in its auto component unit to an associate firm and booked a profit of $27 million.
Tata Motors had planned to raise up to 72 billion rupees through three simultaneous but unlinked securities issues but now plans to go ahead only with the sale of two classes of rights shares, it said.
Funds raised through share sales in India in the first six months of 2008 fell 66 percent from a year earlier to $5.85 billion hurt by falling stock markets, Thomson Reuters data showed. The main share index is down 28 percent in 2008.
Hindalco Industries, India's top aluminium maker, last week said it would offer more rights shares than planned to after the stock market slide soured pricing. It hopes to raise $1.2 billion.
Source: yahoo ind news
v.krishnamoorthy...
Tracked by: 0 Boarder
add....
Analysts tracking the sector sounded bullish on the proposed IPO. "It is a highly rated public sector undertaking and will enthuse investor interest in the primary market," said Amitabh Chakraborty, president (equity), Religare Enterprises. "The IPO is expected attract long-term foreign institutional investors along with retail participants and will bring in depth into the market.
" The public offer was delayed for want of the stipulated number of independent directors on the company's board. SEBI's listing norms stipulate that half the board of a listed company should comprise independent directors.
NHPC's net profit during 2007-08 stood at Rs.1,004 crore-up from the previous year's Rs.
925 crore. It has an installed capacity of 5,200 MW generated from 13 of its hydro power plants and plans to increase its generation capacity to 11,000 MW by 2012 from 5,200 MW now.
The company plans to invest Rs 90,000 crore in new projects over the next ten years. About 10 hydroelectric power plants of the company are under various stages of implementation, including the country's largest hydroelectric project -- a 2,000 MW plant at Subansiri in Arunachal Pradesh.
v.krishnamoorthy...
In reply to:
NHPC IPO to hit market on October 13
Posted by :
Leave it.
NHPC IPO to hit market on October 13
Thu, Aug 21 12:50 AM
The much-awaited initial public offering of shares by state-run NHPC - formerly known as National Hydro Power Corporation - is expected to hit the market on October 13. The company plans to list its shares on the stock exchanges on November 6, said, a senior NHPC official said on condition of anonymity.
According to the official, the company\\`s board of directors will recommend the price band for the proposed public offer, IPO, at a meeting slated for September 16, and will seek the approval of Empowered Group of Ministers\\` for price fixation within the next two days. A weeklong investor road show in cities within the country and abroad is planned from September 29.
NHPC Chairman SK Garg could not be reached for comments despite repeated attempts. The company filed its offer document with the capital markets regulator, Securities and Exchange Board of India (SEBI) earlier on August 6.
NHPC plans to issue 167 crore equity shares of Rs 10 each. This would result in the dilution of 15 per cent of the government\\`s holding in the hydroelectric power major.
Currently, the government owns 100 per cent of the company. NHPC has a paid-up capital of Rs 11,500 crore, comprising of 1,150 crore equity shares of Rs 10 each.
Analysts tracking the sector sounded bullish on the proposed IPO. \\\\
Tracked by: 0 Boarder
NHPC IPO to hit market on October 13
Thu, Aug 21 12:50 AM
The much-awaited initial public offering of shares by state-run NHPC - formerly known as National Hydro Power Corporation - is expected to hit the market on October 13. The company plans to list its shares on the stock exchanges on November 6, said, a senior NHPC official said on condition of anonymity.
According to the official, the company\\`s board of directors will recommend the price band for the proposed public offer, IPO, at a meeting slated for September 16, and will seek the approval of Empowered Group of Ministers\\` for price fixation within the next two days. A weeklong investor road show in cities within the country and abroad is planned from September 29.
NHPC Chairman SK Garg could not be reached for comments despite repeated attempts. The company filed its offer document with the capital markets regulator, Securities and Exchange Board of India (SEBI) earlier on August 6.
NHPC plans to issue 167 crore equity shares of Rs 10 each. This would result in the dilution of 15 per cent of the government\\`s holding in the hydroelectric power major.
Currently, the government owns 100 per cent of the company. NHPC has a paid-up capital of Rs 11,500 crore, comprising of 1,150 crore equity shares of Rs 10 each.
Analysts tracking the sector sounded bullish on the proposed IPO. \\\\...
Tracked by: 0 Boarder
so after today close data nifty is showing sell diver ? what about adx ?
hope you feeling better now......
In reply to:
20th August
Posted by : radhika_nandlal
MALAYALI,
So what did i tell you guys about DOW and crude.. both bearish!! MALAYLAI now u know why i have PUTS? Okay dow is no leader these days but our NIFTY is showing sell divergence.. lets see... it may just close at 4400.. but if not TA on what can one base his/her trades.. u give me explanation for your logic first..
Tracked by: 1 Boarder
dear OT,
Your strategy looks convincing and logical.But are you now comfortable with selling of options?regards...
In reply to:
Option positions taken-OT
Posted by : Oldtimer
How about this hedged strategy:
Buy next month options - Sell current month options - same strike price.
Reasoning - time decay is faster when expiry is near.
Example:
Sell Aug 4500CE@54 Buy Sep 4500CE @ 148 (prices approx)
Cost of next months CE is down by approx 50.
Scenarios: (all prices are close approximations).
---------------------------------------------
Nifty closes at 4554 (130 pts up from current)
Sell 4500CE makes 54-54=0
Buy Sep 4500CE - I assume that Sep 4500CE would have moved up to 198. (assuming delta for that option to be 0.4).
Net saving is 50 on cost of option
---------------------------------------------
Nifty closes @ 4300 (130 points down)
Sell 4500CE makes 54-0=54
Buy Sep 4500CE - I assume that Sep 4500CE would have moved down to 100. (assuming delta for that option to be 0.4).
This would just about break even because the gain in this months option is lost in the premium value of next months option.
-------------------------------------------------------------------------------
So if we do this for both PUT and CALL we'd end up having a strangle/straddle thats cheaper by about the premium gained by shorting this month.
---------------------------------------------------
Your views?
Tracked by: 0 Boarder
Dear Guest,
I dnot find any reason to answer you.
I would be more happy to answer you if u will come with your name.
Happy Investing
NO FEAR PORTFOLIO
Manish Kedawat
...
In reply to:
buy 4700 call
Posted by : Guest
4700 call option currently trading @ 7
My Dear frind, we are not going to see 4700 in this month. Dont waste your money, you need to be cautious and alter your \\`NO FEAR PORTFOLIO\\`
Tracked by: 0 Boarder
dineshsahay-Yes indeed the Buying has started at lower levels!!...
In reply to:
Would you buy at current levels?
Posted by :
dineshsahay
Market is likely to go up as it is approaching 2nd FY09 results and in october08 will be heavy buying is expected.
Regards
dinbeshsahay
Tracked by: 0 Boarder
So what Fannie Mae & Freddie Mac singing now days
Chalo ek baar phir se, ajnabi ban jaye ham dono
Fannie Mae & Freddie Mac 's Investors _ As they say, its all gone and treat Fannie and
freddie as poison.
Na main tumse koi ummeed rakhoon dilnavaazi ki
Na tum meri taraf dekho galat andaaz nazaron se
government bailout plan
Tumhen bhi koi uljhan rokti hai peshkadmi se
Mujhe bhi log kehte hain, ki yeh jalve paraaye hain
Chalo ek baar phir se, ajnabi ban jaye ham dono...
Tracked by: 67 Boarders
Hey L&T,
I have subscribed to the RSS feed of your blog and will try to have a look daily. Though I do not understand all the technicals you describe but I am a quick learner and should be up to speed soon.
Do keep posting your views on Sensex trends.
I also have a suggestion that you should start tracking Nifty too. I like it more than Sensex....
In reply to:
WILL NIFTY HIT 3600 & SENSEX TOUCH 12000
Posted by : lion-&-tiger
Hi PKK,
The following is copied from reutersindia dot net and this for your information. You can have detailed view with graphical supports from there.
A close on the old 14,645 support line on Wednesday.
The next chart shows the Parabolic-SAR which has touched the price action and has now turned bearish. The MACD lines have crossed and as you can see the lower line on the Alpha Beta trend is turning down sharply and is about to turn neutral from bullish.
The near-term technical picture is turning bearish.
The rupee eased a bit more on Wednesday as you can see from the third chart but the 10-day correlation study of the SENSEX vs INR is still high. A very high correlation between the two has existed for around a month now so if you watch the SENSEX you do need to keep a close eye on what is happening to the rupee and therefore the USD.
Below that is a correlation chart of the SENSEX vs the MSCI Asia stocks index ex-Japan which clearly shows the India market decoupling form the Asia markets since the beginning of the month. The correlation index is still negative as per the sub-chart.
I have now launched a Blog associated with this site at http : / / blogs . reuters . com / technicallyspeaking /
if you would like to join the discussion.
Regards
Poll
 |
Popular Boarders 7days| 255 | |
| 224 | |
| 153 | |
| 152 | |
| 114 | |
Top Tracked 7days| 789 | |
| 705 | |
| 676 | |
| 369 | |
| 362 | |
Prolific Boarders 7days| 230 | |
| 214 | |
| 150 | |
| 124 | |