ya if ROCE u take as Return on Common Equity than its knida same as ROE.
bt ROE measures return on all equity including common,preferred
and ROCE measures return on only common equity I guess...in real world there is maximum chance that firm who had issued common shares also have issued prefferred shares also so I dnt really see the use of roce in that way..bt its very much comparable to roe in that sense.
Confusion When calculating days of collection period/ days of inventory in some places avg inventory/debtors is taken and in some cases only closing balances are considered. Why is that ?
@iwantgovtjob hi many firms use this flexibility in calculating the days ratios..there is no right or wrong here..in my opinion taking closing balances are more appropriate..it will give a true picture of instances like piling up of inventory due to weak demand/a lost client which otherwise would not appear starkly if average is taken..
We are a group of finance professionals with over 3-5 years of experience. Though some of us have been blogging for the last few years, we are now planning to start a collaborative blog on topics related to stock ideas, macroeconomic trends, and investment opinions on various asset classes. A collaborative blog would help us have more frequent posts leading to higher reader interest and hence increased interactivity. We welcome all Puys who can develop an investment thesis and articulate their views and opinions. We will be glad to share some sample articles that we have written.
@Gstheproud007We could start with introductions and then share our respective published or unpublished reports or blogs if we have any. If not, we can simply start posting on the blog. Please share your email ID and I'll send you an invite. Please note that we are as yet culling out content from our individual blogs and back-filing it in the collaborative blog so the site is in 'work in progress' mode till all contributors back-file. I have created a separate thread for this: Lets take this conversation there: It is at MBA Forums > The Lounge - Chit Chat>Anyone for Collaborative Blogging?
Hi puys, it has been long since i posted on PG. Im currently doin MBA in BIM, Trichy.. Had a confusion between marketing and finance fr d past 3 mnths here !!
Now, after reading both 'why marketing' and 'why finance' threads, i have decided to take finance as my core specialization in MBA. However, im keepin my mind open for other options also. Im an engg student and a fresher. Have no or very few knowledge about finance and economics.
can u pls tel me how to develop a good understanding of finance? what books to study, which website to refer?
Hii vryone, can u plz suggst me one gud current topic fr doing rsrch in finance(banking sector)... coz in our collge they wont let us to do prjct n ny cmpny...
I am an engineering graduate with two years of experience in the IT field. I want to pursue MBA and I am thinking of Finance. I am really interested in learning finance and accounting concepts.
Only thing is, I am not very good with Maths. I am completely fine with Accounting and related concepts and even basic math, but not something like Calculus. I want to know how much of math is involved in Finance stream.
I am Inga, from Frankfurt School of Finance and Management. It is nice hearing about your interest in Finance. Mathematical knowledge is needed in finance, but it is not the main focus as the accounting is the more important. However, the program curriculum may differ in universities, therefore it would be hard to say how much of maths would you have to study. We do focus more on the business management field and use finance as one of most important integral part in it. Therefore, the Master of Finance which we offer, would ask you to study statistics for business and finance, principals of economics, management, financial products, corporate finance, risk management et cetera. If you would like to, you can drop me an email or provide yours and I would gladly send you a short presentation on the program along with the curriculum so you could understand better what the program offers and what would you have to study the most.
@iwantgovtjob Hi, well the question you just asked , popped in my mind too, while i was studying my Chartered Accountancy, and when i tried to explore, the teacher gave me a simple and sweet, exam oriented answer:
We PREFER average debtors, as a matter of fact, the most preferred would be monthly/fortnightly moving average of debtors, the logic behind such preference, is that we are comparing Sales (a flow concept), with Debtors ( which is a stock concept), [if you have doubt in flow v/s stock let me know] thus in order to ensure fairness we should use the average debtors, with Sales (more preferably Credit Sales),
But, now in absence of such info., or when such ratio is not a very significant variable for decision we might be ready to compromise just a little , by using the Closing Debtors, instead.
