Econfin-invest | Adding Profit Your Life

"Truth is the most valuable thing we have. Let us economize it"

The stock market is a device to transfer money from the impatient to the patient

"You cannot escape the responsibility of tomorrow by evading it today"

"To contract new debts is not the way to pay old ones"

"Do the best you can, and don’t take life too serious"

FIN101 #18 WHY CAN’T FINANCE BE SIMPLE?

20/10/2021 No Comments

Why can’t the world of finance be simpler? Let’s think about a simple version of capital markets. On one side, there would be individuals and

FIN101 #17 FIXATED ON THE FUTURE

07/10/2021 No Comments

Finance professionals look to the future for the most important questions regarding the value implications of any decision. In short, the source of all value

FIN101 #16 FREE CASH FLOWS

03/10/2021 No Comments

The final cash measure is free cash-flows, one of the most important measures of economic performance in finance. You’ll see this number again and again

FIN101 #15 THE CASH CONVERSION CYCLE

29/09/2021 No Comments

A powerful way to frame the financing consequences of working capital is to frame working capital temporally rather than monetarily. This framing is called the

FIN101 #14 WORKING CAPITAL

26/09/2021 1 Comment

Working capital, the capital that companies use to fund their day-to-day operations, is critical to understanding operating cash-flows. While you might think of finance as

FIN101 #13 FROM EBITDA TO OPERATING CASH FLOWS

24/09/2021 No Comments

Given the obsession with cash, it’s not surprising that there is a separate financial statement dedicated to it: the statement of cash‑flows. Many finance professionals

FIN101 #12 WHAT WE TALK ABOUT WHEN WE TALK ABOUT CASH

22/09/2021 No Comments

In the previous, we used net profit to measure corporate performance. Although net profit has merits – it’s a powerful measure for thinking about how

FIN101 #11: FINANCE VERSUS ACCOUNTING: CONSERVATISM AND ACCRUAL ACCOUNTING

20/09/2021 No Comments

Finance takes issue with two of the foundations of accounting: conservatism and accrual accounting.

FIN101 #10 THE MOST IMPORTANT RATIO

18/09/2021 No Comments

Which of those many ratios is the most important for managers to focus on? This question is controversial, but many financial analysts focus on return

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