Master Investor Series - Financial Ratios & Analysis - Explained in Hindi | #26 Master Investor

SUBSCRIBE KEECHE E E SETUKI CHANNEL CO O DELL ICON CODUBBYE E LITEST FINANCE FEDEOS SUB SE PHALE DICK NAKELY E Namaskar, my name is Mukul and I am your witness where we unlock the knowledge of finance In this video, I am going to discuss a very important topic Mainly, I will give financial ratios and analysis introduction Now, let us analyze the financial ratios Now, let us analyze the results Now, let us analyze the results If we want to know about the health of our body then we use different metrics For example, we have our body temperature We have a cholesterol We have a cholesterol of our body Triaglycerides, Schogar We have a matrix of the world Similarly, if we want to know about a company's health then we will know about financial ratios Now, let us know about the financial health of our company First, the work is that if you want to know about your own company's financial health then you can calculate financial ratios How your own financial health is and how does the other company compare it? Secondly, if you invest in the share market then if you buy a share of a company's health then you need to analyze a fundamental and the biggest part of the fundamental analysis is the financial ratios So, that is why financial ratios are very important Now, financial ratios are divided into 5 categories 1 is your profitability ratios 2 is your liquidity ratios 3 is your solvency ratios 4 is your activity ratios and 5 is your valuation ratios This is basically the basis for all the ratios How are the profit margins of the company's profit? How is the short term and long term debt position? Which means, he has not taken many loans or has not taken many liabilities whether he is able to complete it or how is the operational efficiency of the company's company's share price?

or how do we know the truth? So, all these things are found in financial ratios We will cover all the ratios in detail but in this video, I will give you an introduction about what ratios are and how they calculate So, you will definitely see the last video from the beginning which is an important point Let's go towards the blackboard So, first of all, your profitability ratios are the financial ratios which we know how good the company is in making money Profitability is related to profits So, a company is very good how much profit it is in the market? How much profit it is in the market? We all know this from the profitability ratios And we also understand that the company's competitive position is in the market If we compare it with the other companies in the sector of the same sector then how much profit margin is good?

How much profit is the turnaround? All these things we know and where do we calculate the profitability ratios? So, mainly you get income statements from which way income is and you get expenses then you get profitability ratios calculated So, if I give you an example then profit margin is the most common So, you divide the net profit in sales revenues then you get profit margin and you calculate everything So, if a company is the most common then it is the most common then it is the most common that the most common profit margin is better then you will have to invest in such a company which is very good for profit margin So, that means that profit margin if you are higher then you will be better and if your company is also better then you will want that your margins are better and improve in coming times The second type of our ratios is liquidity ratios liquidity ratios tell us that a company can pay so easily on their liabilities that means, the amount of money or any kind of liability in short term is very comfortable to pay for that we know liquidity ratios Now, liquidity means that no such a company can come to make a bank account and to make assets of a company then we should not come to such a point This is what we know from liquidity ratios that in short term, the condition of the company is of its debt position So, in this, the most popular ratio is your current ratio which is divided by current assets and you get the ratio So, basically, your current assets should be more than the current liabilities then if your current ratio is more than the current assets then that means, your position is comfortable and the position of that company is comfortable to pay its short term debt So, basically, the higher the ratio the current ratio will be less and the better Now, how many banks of the ratio I will talk about all these in detail in my coming videos Now, we will move ahead Let's see the third type of ratios The third is your solvency ratios Your liquidity ratios are like the short term of liquidity ratios Here, we talk about long term that the company is so comfortable that it is long term debt So, in long term debt, your term loans are being brought up so, the long term that you have taken for the fixed assets then you will know how comfortable the position of solvency ratio is So, we also call it the average ratios or the debt ratios as well If I give you a popular example of the ratio then the debt ratio is the total liabilities of the company divide it from the total assets So, you will know that the amount of assets is in the debt portion So, if you consider the debt ratio is 0.8 that means, the amount of assets that are in the debt financing is not good because if your debt portion is much more then the problem of the company can be the problem of the long term because the debt is the short term that is the long term Now, let's move on Our activity ratios We will tell you about the operational efficiency of the company The operational efficiency of the company is that the company means the current assets and current liabilities or the long term assets can be managed by which the production is more Now, if we talk about the example then it has a inventory turnaround ratio and we also call it the efficiency ratio or the asset utilization ratio So, the efficiency is basically from the operational efficiency and the asset utilization ratio If your assets are long term assets then how efficiently you are using them to produce more and more So, if we talk about the inventory turnaround then we calculate this Cost of goods sold divided by average inventory We have a Schumannu-facturing unit So, the cost of goods sold is total the cost of making a juice is total juice from the cost of goods sold from the cost of goods sold from the cost of goods sold from the cost of goods sold and the average inventory is the level because we will take out the average of the work in the raw material and the average of the work in the raw material which is the inventory in the factory this inventory turnaround ratio is calculated in this way So, this means that means that the turnaround is the juice sold So, you will basically want to produce faster and sell faster as much as you will have to turn around so, as much as your inventory turnover will be ratio then that means your first turnaround and the better So, you will want to have more inventory turnover and the second activity ratio which is your operational efficiency 5th is your valuation ratio valuation ratio basically, you will help you to get an investment decision that you basically want to know that in any company you want to invest what is the right value Now, this is a different ratio for this, it is a very popular ratio which we call as PE in that first, you will take out earnings and the total net profit of your company is a year, you divide it from the number of outstanding shares so, your EPS then you take out PE ratio, this is a very popular term I will start with PE ratio is so popular that when you talk about the share market then you will get the name so, what happens is that your price is current market value I will write here current market value which is a share which you want to invest you divide it from earnings so, you will divide it so, the amount of PE ratio is better, that means the price of the stock the rest of the stock will be in the sector that is PE that means it is better for investment similarly, the same way you can compare to other companies so, broadly you take out different ratios and you come to a decision that a company is doing good and has a profitability and has no liquidity and has no problem with the solvency if the efficiency is good then you will definitely need to invest in such a company similarly, this is after investment you can calculate your ratios of your company and you can see how the rest of the company is doing in the rest of the company so, in this video, I have introduced basic financial ratios I have shared one example of various ratios we will go in detail, we will cover in one video, so, you will definitely see this video if you liked this video please like and share if you have any questions or want to give feedback related to this video, then you can comment every day I share this channel on this channel so, if you haven't subscribed you will get my latest video's notification so, see you in the next video till then, keep learning keep learning keep learning