Vishal Bharadwaj

  Return on assets (ROA) is a financial ratio that measures how efficiently a company is using its assets to generate profits. ROA is calculated by dividing a company's net income by its total assets. Let's look at an example to illustrate how to calculate and interpret ROA. Suppose ABC Company has a net income of $50,000 and total assets of $500,000 in a given year. To calculate the ROA, we would divide the net income by the total assets: ROA = Net Income / Total Assets ROA = $50,000 / $500,000 ROA = 0.10 or 10% This means that ABC Company generated a return of 10% on its total assets during that year. In other words, for every dollar of assets that the company had, it generated 10 cents of profit. It's important to note that ROA can vary widely across industries and companies, so it's important to compare a company's ROA to others in the same industry to gain a better understanding of its performance. A high ROA can indicate that a company is effectively using its...

  Interpreting quarterly results of a company can provide important insights into its financial health and performance over a specific period of time. Here are some steps to help you interpret quarterly results: Review the income statement: The income statement shows the company's revenue, expenses, and net income. Look for trends in revenue and expenses, and compare them to the same period in the previous year. Examine the balance sheet: The balance sheet shows the company's assets, liabilities, and equity. Pay attention to changes in assets and liabilities, as well as the company's debt levels. Analyze cash flow: The cash flow statement shows how the company generated and used cash during the quarter. Look for trends in cash flow, including operating, investing, and financing activities. Compare to industry benchmarks: Compare the company's performance to industry benchmarks to determine how it is performing relative to its peers. Look for key performance indicators: ...

  Interpreting a balance sheet of a company is important to understand the company's financial health and stability. Here are some steps to interpret a balance sheet: Understand the basic components: The balance sheet consists of three components: assets, liabilities, and equity. Assets are what the company owns or controls, such as cash, investments, property, and equipment. Liabilities are the company's obligations, such as loans, accounts payable, and taxes owed. Equity is the residual interest in the assets of the company after deducting liabilities. Analyze the liquidity position: The liquidity position of a company can be analyzed by looking at the current assets and current liabilities. Current assets are those that are expected to be converted into cash within one year, such as inventory, accounts receivable, and cash. Current liabilities are those that are due within one year, such as accounts payable and short-term loans. A company's liquidity position is strong i...

  Dabba trading refers to an illegal practice in India where brokers or traders trade securities without registering the trades on any recognized stock exchange. Instead, they use their own trading platforms to execute trades and settle them offline. The term "dabba" means a box or container in Hindi, and in this context, it refers to a box or container used to keep records of trades. Dabba trading is illegal in India, as it bypasses the regulations and oversight of the Securities and Exchange Board of India (SEBI), which is responsible for regulating securities markets in India. It is also risky for investors, as the trades are not transparent, and the traders may not have the necessary skills or expertise to trade successfully. Here's an example of how dabba trading might work: Suppose a trader wants to buy 100 shares of XYZ Ltd, which is listed on the Bombay Stock Exchange (BSE). Instead of placing the trade through a registered broker on the BSE, the trader contacts a...

  Stock Market Amid Indo-Pak Tension On April 22, 2025, a devastating terrorist attack struck the Pahalgam region of India, claiming 26 lives. The brutality of the assault, where attackers interrogated victims about their religion—demanding Hindu or Muslim identification, forcing men to disrobe for verification, or compelling them to recite the Kalma—shocked the nation. Failure to comply resulted in execution in front of families. This heinous act not only broke the nation's heart but also fueled widespread anger, as it was clearly designed to sow hatred between communities. Such attacks demand a resolute response. I believe India must take decisive and robust measures to send an unequivocal message to perpetrators: India is a strong, modern nation that will leave no stone unturned to protect its citizens. By demonstrating unwavering resolve, India can deter future acts of terror and reaffirm its commitment to national security. How to Invest in War-Like Situations War-like situati...

Understanding a company’s financial health is like reading the pulse of a business. One of the most critical tools for this is the Profit and Loss (P&L) statement, also known as the income statement. Whether you're a business owner, an investor, or simply curious about financial analysis, mastering the art of interpreting a P&L statement can unlock valuable insights into a company’s performance, profitability, and potential. In this guide, we’ll break down the P&L statement, explain its components, and share practical tips on how to analyze it effectively. By the end, you’ll be equipped to read a P&L like a pro and make informed decisions based on the numbers. What is a Profit and Loss (P&L) Statement? A Profit and Loss statement is a financial report that summarizes a company’s revenues, expenses, and profits (or losses) over a specific period, such as a quarter or a year. It’s one of the three core financial statements—alongside the balance sheet and cash flow...

  How to Trade Illiquid Stocks: A Comprehensive Guide Illiquid stocks, characterized by low trading volumes and limited market activity, present unique opportunities and challenges for investors. Unlike highly liquid stocks like those of large-cap companies, illiquid stocks—often small-cap, micro-cap, or over-the-counter (OTC) securities—can be difficult to buy or sell without impacting their price. However, with the right strategies, patience, and risk management, trading illiquid stocks can yield significant returns, especially for those seeking undervalued opportunities. This 1200+ word blog post provides a unique, actionable guide to navigating the complexities of illiquid stock trading, covering identification, strategies, risks, and practical tips for success. Understanding Illiquid Stocks Illiquid stocks are shares of companies that trade infrequently, resulting in low daily trading volumes, wide bid-ask spreads, and higher price volatility. These stocks often belong t...

  Market fluctuations are an inherent part of investing, driven by economic cycles, geopolitical events, corporate performance, and human psychology. Whether you’re a seasoned trader or a novice investor, the ups and downs of financial markets can evoke stress, uncertainty, or even opportunity. By understanding the causes of fluctuations, adopting strategic approaches, and leveraging practical tools, you can protect your portfolio and capitalize on market dynamics.  Understanding Market Fluctuations Market fluctuations refer to the short-term or long-term changes in asset prices, indices, or market sectors, often measured by volatility metrics like the CBOE Volatility Index (VIX). These fluctuations can range from minor daily swings to significant corrections (drops of 10% or more) or bear markets (declines of 20% or more). According to Morningstar, since 1871, the U.S. stock market has experienced 12 bear markets with declines over 20%, yet it has consistently recovered t...