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Oct 9, 2024 7:27 AM - Sanzhi Kobzhan
How to Analyze a Company Using Financial Ratios and the Financial Modeling Prep API
Analyzing a company is essential whether you're an investor, a business owner, or just curious about how a business operates. One of the best ways to understand a company's health is by using financial ratios. In this article, we'll walk you through the basics of company analysis, explain key financ...
Sep 24, 2024 8:19 AM - Sanzhi Kobzhan
A quick guide to financial ratio analysis, why you need them, how to read them and why you should not rely solely on the P/E ratio.
Financial ratio analysis provides a good picture of a company’s profile, its financial condition, and where it stands in comparison to its closest peers. By analyzing a company’s financial ratios, you can also undertake equity valuation using a simplified valuation model. I’ve already talked about t...
Aug 8, 2024 3:14 AM - Parth Sanghvi
Benchmarking Companies Within an Industry: Key Ratio Considerations
Benchmarking Companies Within an Industry: Key Ratio Considerations Introduction Benchmarking is a critical financial analysis tool that enables investors, analysts, and management teams to evaluate a company's performance relative to its industry peers. By comparing key financial ratios, stakeh...
Aug 7, 2024 3:57 AM - Parth Sanghvi
Essential Financial Metrics in Company Reports: A Comprehensive Guide for Investors
Conducting a thorough industry analysis is essential for businesses and investors looking to understand market dynamics and identify growth opportunities. By examining industry trends, competitive landscapes, and economic factors, you can gain valuable insights that drive strategic decision-making. ...
Jul 31, 2024 5:37 AM - Parth Sanghvi
Basic Financial Ratios: Essential Tools for Smart Investing
Basic Financial Ratios: Essential Tools for Smart Investing In the world of investing, understanding financial ratios is crucial for evaluating a company's performance and making informed investment decisions. These ratios provide insights into various aspects of a company's financial health, fro...
Jul 24, 2024 3:49 AM - Parth Sanghvi
Portfolio Optimization Techniques: Advanced Methods Using Financial Data APIs
<h1>Portfolio Optimization Techniques: Advanced Methods Using Financial Data APIs</h1> In the ever-evolving world of finance, portfolio optimization remains a crucial strategy for investors seeking to maximize returns while managing risk. This article explores advanced portfolio optimization tech...
Jul 17, 2024 2:51 AM - Parth Sanghvi
Quantitative Investment Strategies: Backtesting, Performance Attribution, and Machine Learning Applications
Introduction Quantitative investment strategies have become increasingly sophisticated, leveraging data-driven approaches to optimize portfolio management and enhance decision-making. This blog will delve into the essential components of quantitative investment strategies, including backtesting...
Jul 11, 2024 3:42 AM - Parth Sanghvi
Data Cleaning for Financial Modeling | Accurate Analysis Techniques
The Importance of Data Cleaning in Financial Modeling Data cleaning is a crucial step in financial modeling, as it ensures that the data used for analysis is accurate, consistent, and free of errors. High-quality data is fundamental for creating reliable financial models, making informed decision...
Jul 4, 2024 3:02 AM - Parth Sanghvi
Political Influence on Markets: Understanding Senate Trading Activities
Political decisions and actions can significantly influence financial markets, and one area of particular interest is Senate trading activities. This blog post delves into how Senate trading impacts stock prices, the underlying mechanisms, and practical insights for investors. The Role of Polit...
Jul 3, 2024 2:50 AM - Parth Sanghvi
ETF Investment Strategies: Analyzing Fund Holdings for Smarter Decisions
Exchange-Traded Funds (ETFs) are popular investment vehicles that offer diversification and liquidity. However, to make the most of ETF investments, it's crucial to analyze fund holdings and understand their impact on performance. This guide explores ETF investment strategies and how analyzing fund ...
Jun 10, 2024 5:18 AM - Parth Sanghvi
Investing in the Metaverse: Opportunities in Virtual Assets
The concept of the Metaverse—a collective virtual shared space created by the convergence of virtually enhanced physical reality and physically persistent virtual reality—has gained significant traction in recent years. It represents a new frontier for investment, where virtual assets such as digita...
Jun 10, 2024 3:45 AM - Parth Sanghvi
Direct Costs vs Indirect Costs: A Comprehensive Guide
Understanding the distinction between direct and indirect costs is crucial for businesses when it comes to budgeting, pricing, and financial planning. These two categories of costs impact everything from profit margins to financial statements. In this guide, we will break down what direct and indire...
Jun 10, 2024 3:37 AM - Parth Sanghvi
Traditional IRAs vs Roth IRAs: Choosing the Right Retirement Account
Planning for retirement is one of the most crucial aspects of personal finance. Among the many options available, Individual Retirement Accounts (IRAs) are popular choices for individuals looking to save for the future. Two of the most common types of IRAs are Traditional IRAs and Roth IRAs. Each ha...
Jun 8, 2024 8:00 AM - Sanzhi Kobzhan
How to Calculate Fair Value of a Stock with the Price-Income Model
In this article, I want to share a very simple valuation model that requires minimal assumptions from you: the Price-Income model. All you need to do is download company financial ratios and those of the closest peers, calculate peer ratio averages, compare them to your selected company ratios, assi...
Jun 6, 2024 3:06 AM - Parth Sanghvi
Financial Ratios: Liquidity Ratios vs Profitability Ratios
Financial ratios are essential tools for evaluating a company's financial health and performance. They help investors, analysts, and management understand various aspects of a business, such as its ability to meet short-term obligations and its overall profitability. Among the many financial ratios,...
Jun 6, 2024 3:04 AM - Parth Sanghvi
Interest Rate Risk vs Credit Risk: Understanding Fixed-Income Investment Risks
Fixed-income investments, such as bonds, are popular among investors seeking steady returns and lower volatility compared to equities. However, like all investments, they come with their own set of risks. Two of the most significant risks associated with fixed-income investments are interest rate ri...
Jun 6, 2024 3:00 AM - Parth Sanghvi
EBIT vs EBITDA: Understanding the Key Differences
When analyzing a company's financial performance, EBIT (Earnings Before Interest and Taxes) and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) are two of the most commonly used metrics. Both provide valuable insights into a company's operating profitability, but they serve ...
Jan 21, 2024 4:00 AM - Parth Sanghvi
Understanding Profitability Metrics: Exploring ROE, ROA, and Net Profit Margin
Introduction: In the world of financial analysis, a profound grasp of essential profitability metrics is vital. This blog delves into three pivotal metrics—ROE (Return on Equity), ROA (Return on Assets), and Net Profit Margin—offering clear insights without unnecessary complexity. Exploring RO...
Jan 12, 2024 2:28 AM - Parth Sanghvi
Optimizing Operations: Discovering the Efficiency Ratios that Drive Asset Utilization
Introduction: Embark on a journey into the heart of operational efficiency with our exploration of key efficiency ratios. In this blog, we'll unravel the metrics that drive asset utilization, focusing on inventory turnover, receivables management, and other ratios that serve as indicators of a co...
Jan 6, 2024 3:36 AM - Parth Sanghvi
Ratio Analysis: Revealing Hidden Insights within Annual Reports
Understanding Financial Health Through Ratios Understanding Ratio Analysis Ratio analysis is a cornerstone of financial analysis, using various metrics to assess a company's financial performance, stability, and operational efficiency. Annual Reports: A Treasure Trove Annual reports encaps...
