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What Does Window Dressing Mean? A strategy used by mutual fund and portfolio managers near the year or quarter end to improve the appearance of the portfolio/fund performance before presenting it to clients or shareholders. To window dress, the fund manager will sell stocks with large losses and purchase high flying stocks near the end of the quarter. These securities are then reported as part of the fund's holdings.
The two simplest ways to analyze your financial statements are vertically and horizontally. A vertical analysis shows you the relationships among components of one financial statement, measured as percentages. On your balance sheet, each asset is shown as a percentage of total assets; each liability or equity item is shown as a percentage of total liabilities and equity. On your statement of profit and loss, each line item is shown as a percentage of net sales. A horizontal analysis provides you with a way to compare your numbers from one period to the next, using financial statements from at least two distinct periods. Each line item has an entry in a current period column and a prior period column. Those two entries are compared to show both the dollar difference and percentage change between the two periods.
Profit & Profitability Profit is the amount made........ profitability is the potential there to be made.
Profit is a figure in absolute terms. It is the number that sits at the bottom of the statement of financial performance. It is calculated by taking the income earned and deducting the expenses incurred in deriving that income. Profitability on the other hand is a measure of the profit compared to a number of relevant factors. Profitability tells us more about the efficiency and performance of a business.
In most simple way, Profit is simply the earnings minus expenses of any company. So, this is just a figure of performance whereas profitability shows companys ability to make profits. And this ability i.e. profitability is measured by checking the same profit figure on the scales of net assets, total worth etc., which we do while calculating profitability ratios like return on assets, return on equity etc.