AVFINPAL- Your Financial Pal

The very basic of investing and understanding a business is to understand the finances of the company. The finances and monetary positions of the company are the backbones of any decision when it comes to investing or understanding the company.  Though there is no set pattern when it comes to filtering the information from the financials of the company and the type of filtering depends upon the style, need and size of the information. required. In this article, we will be sharing the basic you should always look for while picking up a company for investing.   1. Net Income In terms of overall profitability, the net income is the obvious starting point when analyzing a financial statement. This bottom-line amount on a company's income statement is an excellent indicator of profitability because it puts a value on the amount a company takes in, once all costs of production, depreciation, tax, interest and other expenses have been deducted. 2. Operating Profit Margin Oper

It is a scientifically proven fact that people do irrational things to avoid making losses. One of the biggest fears they have is that of losing money. In fact, studies have revealed that the pain of losing is twice as strong an emotion than the joy of winning. Thus, the emotion felt while losing Rs 100 is doubly strong than that felt by gaining Rs 100. Human nature is not designed to accept losses. Hence human species’ instinctive or natural reaction to a market downturn is flight, and not fight. However, this brings with it the possibility that investors could miss out on opportunities to generate returns that would help them achieve their long-term investment objectives. In this article, we will be sharing as the list of the behavior of investor that can make the equity market mortal for the investors.  1. Not doing proper research and investing based on tips.  The most common and one of the biggest mistake that investors do is to invest based on the tips received fro

Salary slip is one of the vital documents of employment. It gives you an overview of your salary structure and taxes paid by you on a monthly basis. The fact is many of us still don't understand the basic structure and terms of the salary Slip. Understanding a salary slip can help you manage and plan your money in a better way. In this article, we break down and discuss the components of the salary slip and its importance as well. Before dig deep and decode the salary slip lets understand the two very basic terms and importance of the salary Slip:  a. Cost To Company (CTC): It is the cost that the employer spends on the employee during a particular year. It Includes Salary, reimbursement, contribution, performance bonuses and taxes. b. Gross Salary: It is the amount the employee receives as a salary, before any deductions. It is the amount the employer has committed to pay to the employee. It includes components like basic salary, dearness allowance, medical allowance, c