All Finance terms definitions in the Financial analysis category

What is Bear Market ?

What is Bear Market The bear market is a condition in which, securities show decreasing trend in prices, caused by negative sentiments in the market. When If the market condition falls by more than 20%, it is a clear indication of a bear market. This condition takes place when the economy enters into recession, […]

Bookkeeping and Financial Tool?

This is a simple accounting, bookkeeping and Financial Tool which is developed to serve you the purpose of financial analysis. This tool will help you out to know your company T-account balances, Trial Balance, Income Statement, Balance Sheet, Cash Flow, Ratios and Analytical charts This is simple to use and easy to update on […]

Definition for return-on-net-assets-rona

What is Return on Net Assets (RONA) ?

Return on Net Assets (RONA) is one of the financial performance indicators. It is the simplest way to know the profitability with opportunity cost analysis of the company.It is calculated as; Return on Net Asstes= Net Income / Fixed Assets + Net Working Capital To calculate Return on Net assets (RONA), only consider […]

What is Activity-based management process ?

Activity-based management process has three stages such as Process view Cost assignment view and A third one is a continuous improvement process. In the process view, management analyzes cost drivers of product or services of an organization and prepare a list of cost drivers. In second process name as cost assignment view, management analyzes resources […]

What is Return on Investment (ROI)?

ROI (return on Investment) is used to evaluate an efficiency of an investment made on projects and to compare the efficiency of other project’s investment Formula: ROI = (Gain form investment – Cost of Investment ) / Cost of investment