FINANCIAL_PPT2_(2).pptx

7/28/2019 FINANCIAL_PPT2_(2).pptx

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FINANCIALTERMINOLOGIES


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SUBMITTED BY

GROUP TRADEMARKS

GROUP 2


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RISK RETURN TRADE OFF

Return :It is defined as the annual income

received plus any change in market price for

a given period.

Risk:The variability of actual return from the

expected return.So greater the variability

riskier the security is.


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RISK RETURN TRADE OFFCONTD

Risk return trade off:It establishes the

relationship between risk and return.

Risk and Return are directly proportional to

each other.

ie higher the return or yield the larger the

risk


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DEBENTURES

A Debenture is a document under the companys seal

which provides for the payments of a principal sum and

interest

secured with a fixed or floating charge on the companys

property.

A debenture holder is a creditor of the company.

A fixed rate of interest is payable on debentures.


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TYPES OF DEBENTURES

Simple/ Naked/ Unsecured debentures

Secured/ Mortgaged debentures

Bearer debentures

Registered debentures


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BONDS

A bonds a debt security.

Obliged to pay interest or to pay the principal at a

later date, termed maturity.

A bond is a formal contract to repay borrowed money

with interest at fixed intervals.


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FEATURES OF BONDS

A Bond is like a loan.

Bonds and Stocks are both securities.

Bond is similar to that of debenture.


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COST ACCOUNTING

Aims to capture a company's costs of production by

assessing the input costs.

Cost accounting will first measure and record thesecosts individually.

Compare input results to output or actual results.

Helps company management in measuring financial

performance.


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It provides management with costs for products,

inventories, operations or functions

It also provides a variety of data for many day-to-daydecisions.

Helps management in making strategic decisions by

identifying an organisation.


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Cost accounting is a very important part of the

management accounting process.

In order for managers to determine the best methods to

increase a company's profitability,

Cost accounting is a necessary system in the

management of a company's budget,

Providing important data to analyze fluctuation in

company production costs.


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DIRECT COSTING

Charging all direct cost ,variable and some fixedcost.

Direct materials which enter into and form ofproduct.

All materials specially purchased for a particular

process or job or production process.

All primary packingmaterials,wrappings,cartoons,pepsibottle cans


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DUPONT ANALYSIS

Systematic Approach to financial statements.

It is used for the firms financial planning and

control.

It helps to pinpoint the factors affecting

changes in profitability.

ROA(RETURN ON ASSETS)=net profit

margin ratio*total assets turnover ratio


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CALCULATION

ROE=Net Income/Equity

i.e

Net Income/sales*sales/total assets*totalassets/equity


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PRESENTED BY,

JISHA SUSAN JAISON

SANDHYA RANI

NEVIN THOMAS

NIPIN RAJUABHISHEK

MOHAMMED ANSAR


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PROF.RAJESH JANARDHAN

ASSISTANT PROFESSOR-

FINANCE

SUBMITTED TO


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FINANCIAL_PPT2_(2).pptx

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