Covid-19 effect on Automobile Industry

Covid-19 effect on Automobile Industry

Covid-19 effect on Automobile Industry

The coronavirus (COVID-19) outbreak is massively causing widespread concern and economic hardship for consumers, businesses, and communities across India. The COVID-19 pandemic has pushed humanity and the global economy into a crisis not seen since The Great Depression. To curb the effect of this pandemic, The Indian Government has enforced a national lockdown, but it has severely affected the economy, upsetting entire value-chains of most major industries in India. The automotive industry is no different and one of the most affected due to the pandemic. (more…)
NPV vs IRR

NPV vs IRR

NPV vs IRR

Definition: Analysis of a project requires financial evaluation using Capital Budgeting and Investment Planning techniques. Two essential tools for any such financial analyst are NPV and IRR. (more…)
What is Leveraged Buyout and how does it works?

What is Leveraged Buyout and how does it works?

LEVERAGED BUYOUT

A leveraged buyout (LBO) is the acquisition of a company, division, business, or collection of assets (“target”) using debt to finance a large portion of the purchase price. The remaining part of the purchase price is financed by a financial sponsor (“Sponsor”) with an equity contribution. (more…)
How Net Stable Fund Ratio is Managed by Bank

How Net Stable Fund Ratio (NFSR) is managed by bank?

How Net Stable Fund Ratio (NFSR) is Managed by Bank?

The key role of banks in society is to attract savings from families, businesses, and other stakeholders and then lend it to others. A bank borrows short-term loans (deposits) and lends long-term loans. The management of this timing mismatch creates an advantage, but also involves a number of risks. One of the largest is to keep the liquidity deemed necessary to meet the cash needs of those who have lent the bank their money. (more…)
Covid-19 Impact on Hotels and Tourism

Covid-19 Impact on Hotels and Tourism

Covid-19 Impact on Hotels and Tourism

HOTELS “In terms of our business, Covid-19 is like nothing we’ve ever seen before”, remarked Arne Sorenson, CEO Marriott International. The lockdown in the country to control the spread of Covid-19 has had devastating effect on the hospitality sectorparticularly for hotels. Hotels are very capital-intensive businesses and even have very high operating costs. Normally, the capital-intensive portion is a debt that must be serviced by payment of interest on the debt and repayment of debt. Hotels are often labor-intensive because they have plenty of fixed expenses in addition to paying government levies, such as wage bills. (more…)
What is Straddle Strategy?

What is Straddle Strategy?

What is Straddle Strategy?

Introduction:
  • Strategies for options may seem confusing, but that's because they give you a lot of versatility to tailor your potential returns and risks to your particular needs. One fascinating strategy known as a straddle strategy can help you make money whether the market goes up or down, as long as it moves sharply enough in either direction.
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What is Straight Through Processing?

What is Straight Through Processing?

What is Straight Through Processing?

Straight-through Processing ("STP") is a mechanism that automates the end-to-end processing of transactions of the financial instruments. It involves the use of a single system to process or control all elements of the work-flow of a financial transaction, including what is commonly known as the Front, Middle, and Back office, and General Ledger. (more…)
What is Clearing Margin?

What is Clearing Margin?

What is Clearing Margin?

Clearing margins are financial safeguards that guarantee that clearing members (usually businesses or corporations) performed on the open futures and options contracts of their customers. Clearing margins are specific customer margins that are expected to be deposited with brokers by individual buyers and sellers of futures and options contracts. (more…)
Comparative Advantage

Comparative Advantage

Comparative Advantage

Introduction: In a world that’s more connected than ever before, surely a country producing everything by itself is not the most efficient way forward. How then does a country decide what to produce domestically and what to import? Resources are limited, and there’s an opportunity cost involved in the production of anything and everything. Is the Specialization of production a viable concept for countries to follow? This time, we’ll take a look at the theory of Comparative Advantage and how it holds up in a world with increasing Globalization, connectivity, trade liberalization, and technological innovation. (more…)
What is Netting?

What is Netting?

What is netting?
  • A method of reducing credit, settlement, and other risks of financial contracts by aggregating (combining) two or more obligations to achieve a reduced net obligation.
  • To minimize net payments and save processing costs, netting offsets receivables against payments due.
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