In this article we will discuss about:- 1. Meaning of Forecast 2. Financial Forecasting Techniques 3. Benefits. Meaning of Forecast: A forecast is a prediction of what is going to happen as a result of a given set of circumstances. The dictionary meaning of 'forecast' is 'prediction, provision against future, calculation of probable events, foresight, prevision'. In business sense it [...]
EFR is calculated with the help of following formula, when other ratios remain constant: Where, A/S = Total assets/Sales L/S = Current liabilities and provisions/Sales ∆S = Expected increase in sales over current year (S-S1) S = Sales of current year S1 = Projected sales of next year D = Dividend payout ratio M = Net profit margin The expected [...]
The performance of a particular scheme of a mutual fund is denoted by net asset value (NAV). As defined in the AMFI booklet, 'net asset value' is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the [...]