BC ACCOUNTING
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Thread 🧵explaining #ROE & #ROCE and its use in #FundamentalAnalysis

(Must read for #FA learners)

🙏Like & RT to spread learning with all 🙏

Views Welcome 👉 @dmuthuk @Vivek_Investor @datta_arvind @caniravkaria @FI_InvestIndia @AdityaD_Shah

#FundamentalAnalysis #StockMarket

 1⃣

Return on Equity (#ROE) and Return on Capital Employed (#ROCE) are two important Financial Ratios used in #FundamentalAnalysis of Stocks.

#StockMarket #Investing
2⃣

Return on Equity (ROE) is the ratio of Net Income (Net Profit) of a company and it’s Total Equity (Shareholder's Equity).

Here - Shareholders Equity = Share Capital + Reserves & Surplus.

#StockMarket #Investing #FundamentalAnalysis
3⃣

#ROE is a measure of how much net profit a company is making for every rupee invested by its shareholders in the company.

It can be said that higher the ROE, better it is for the equity shareholders. It tells shareholders about how effectively their money is being used.
4⃣

However, you should not trust high ROE blindly. Biggest drawbacks or weaknesses of ROE is that it completely ignores debt.

Hence for companies having high levels of debt, ROE will give a higher but misleading value & therefore we need to look at #ROCE along with #ROE.
5⃣

Return on Capital Employed is ratio of company’s Operating Profit i.e., Profit before Interest & Taxes (EBIT) and its Total Capital Employed.

Here - Total Capital Employed = Shareholder’s Equity + Short Term Debt + Long Term Debt

#StockMarket #Investing #FundamentalAnalysis
6⃣

Since #ROCE measures how much profit a company generates with its total capital employed, it overcomes a major weakness of ROE.

It can be said that higher the ROCE, the better it is. It means that business is profitable & company is utilizing its capital more economically.
7⃣

ROCE is a long term profitability ratio because it shows how effectively company’s assets are performing while taking into consideration long term financing.

This is why ROCE is a more useful ratio than ROE to evaluate the longevity of a company.

#StockMarket #Investing
8⃣

@WarrenBuffett prefers to invest in companies which have both #ROE and #ROCE above 20%.

✅He also prefers that value of ROE and ROCE should be close to each other.

❎He avoids investing in companies where there is a large difference between ROE and ROCE.
9⃣

Shall conclude this thread with a summary comparison table between #ROE & #ROCE

#FundamentalAnalysis #StockMarket #Investing

More from Techno Funda Investing

Techno Funda Investing
Techno Funda Investing
@TechnoFunda6
Thread Threadexplaining #PE Ratio & #PEG Ratio & its use in #FundamentalAnalysis

(Must read for #FA learners)

🙏Like & RT to spread learning with all🙏

Views Welcome👉@dmuthuk @Vivek_Investor @datta_arvind @caniravkaria @FI_InvestIndia

#FundamentalAnalysis #StockMarket


1⃣

Price to Earnings (#PE) ratio, also known as price multiple or earnings multiple is the ratio obtained by dividing the current share price by earnings per share (#EPS).

#StockMarket #Investing #FundamentalAnalysis


2⃣

P/E ratio is a reflection of the market's opinion of the earnings capacity & future business prospects of a company.

Companies which enjoy high investor confidence & have a higher market standing usually command high P/E ratio.

#StockMarket #Investing #FundamentalAnalysis

3⃣

On the face, it would seem that companies with low P/E ratios would offer most attractive investment opportunities. This is not always true.

Companies with high current earnings but dim future prospects often have low P/E ratio.

#StockMarket #Investing #FundamentalAnalysis

4⃣

As an #investor your primary concern is with future prospects of a company & not so much with its present performance.

This is why companies with low current earnings but bright future prospects usually command high P/E ratio.

#StockMarket #Investing #FundamentalAnalysis
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Techno Funda Investing
Techno Funda Investing
@TechnoFunda6
Thread🧵of Sector Analysis

Covers #TechnicalAnalysis of most #sectors.

Courtesy : @YTA_School

Retweet🔁Like❤️to spread learning with all.

@KommawarSwapnil @caniravkaria


1⃣ Why Sector Analysis is Must ?

Read these 2 Pages from the Book 📘 "Relative Strength With Technical Analysis by @YTA_School


2⃣ NIFTY 50

An inverted head and shoulder pattern was seen on chart few days back. If the index comes to retest and gives a strong bullish setup, we are looking for a strong upside move in nifty in coming months.

#Nifty #Nifty50 #TechnicalAnalysis


3⃣ NIFTY MIDCAP 50

An inverted head and shoulder pattern is seen on chart. We can expect a strong up move in the sector in coming weeks and months.

#NiftyMidcap #Midcaps #TechnicalAnalysis


4⃣ NIFTY SMALLCAP 100

Small cap index took support at the trend line and later gave a small pull back breakout and is currently under consolidation.

Once a strong breakout above 9975 happens, we can witness the target of 11900.

#NiftySmallcap #Smallcaps #TechnicalAnalysis
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Techno Funda Investing
Techno Funda Investing
@TechnoFunda6
Case Study 5 : #HindCopper
CMP – 169.35 (11/6/2021)

(Must read Thread 🧵for #TA learners)

Past Fundamentals🤦‍♂️ Current Fundamentals💪 Future🌟

Technically Strong Upmove Candidate 🚀

#TechnoFundaInvesting

@caniravkaria / @nishkumar1977 / @rohanshah619
🙏(Views Welcome) 🙏


1⃣

📊After forming shortterm #Top @ 165 on 2 March 2021 stock corrected to 120 levels

📊After breaking #ResistanceZone on 7 May 2021 stock soon hit high of 196

📊#ResistanceZone becomes #SupportZone

📊Breakout happened today with good #volumes

#HindCopper #TechnicalAnalysis

2⃣

📊In Jan End 2021 Stock took #support on 50 SMA.

📊 In last few days stock has again taken #support on 50 SMA.

For #TA of #HindCopper @RajarshitaS Mam your views welcome 🙏

#TechnicalAnalysis

3⃣

Fundamentally can only say that #Metals are currently in #Upcycle and in case of #Copper the cycle can last a bit longer due to push for #RenewableEnergy.

#HindCopper #Copper #TechnoFunda #Investing

4⃣

Copper is the new oil: Demand for the metal expected to soar this decade.

According to Goldman Sachs “Copper’s current price strength is just the first leg of a structural bull market.”

#HindCopper #Copper #TechnoFunda
NISHHINDCOPPER , COPPERTECHNOFUNDA
Techno Funda Investing
Techno Funda Investing
@TechnoFunda6
Case Study 3 : #UnitedSpirits / #DiageoIndia 🍻
CMP – 629.25 (4/6/2021)

(Must read Thread 🧵for #TA & #FA learners)

Fundamentals Sound & Technically Breakout Soon Candidate !

#TechnoFundaInvesting

@dmuthuk hope you like our detailed analysis🙏

@caniravkaria
@rohanshah619


1⃣United Spirits Limited, abbreviated to #USL (Diageo India) is an Indian alcoholic beverages company, and the world's second-largest spirits company by volume.

#UnitedSpirits #USL #DiageoIndia #StockMarket #TechnoFunda #Investing

2⃣Company has a comprehensive brand portfolio with over about 80 brands of Scotch whisky, IMFL whisky, brandy, rum, vodka and gin.

11 of these brands sell more than a million cases annually.

#UnitedSpirits #USL #DiageoIndia #StockMarket #TechnoFunda #Investing

3⃣Company’s popular brands include - Johnnie Walker, Black Dog, Black & White, Vat 69, Antiquity, Signature, Royal Challenge, McDowell’s No. 1, Smirnoff and Captain Morgan.

#UnitedSpirits #USL #DiageoIndia #StockMarket #TechnoFunda #Investing

4⃣🌟Few Fundamental Positives🌟

✅Company Market Cap – 45,723.74 Cr
✅TTM EPS – 5.28
✅TTM P/E – 119.20
✅Industry Average P/E – 113.63
✅Book Value – Rs. 56.20.
✅Promoter Holding Pledge – 1.19% (Reduced from 3.22% in 9 quarters)
UNITED SPIRITS , ALL
Techno Funda Investing
Techno Funda Investing
@TechnoFunda6
Case Study 10 : #HDFCLife - Medium Term Investing Pick !
CMP – 725.55 (27/6/2021)

(Must read Thread 🧵for #TA & #FA learners)

Fundamentals Sound & Technically Strong Upmove 🚀Candidate!

#TechnoFundaInvesting

@caniravkaria @dmuthuk @Puretechnicals9 @rohanshah619

🙏(Views) 🙏


1⃣ HDFC Life Insurance Company is a long-term life insurance provider offering individual and group insurance services.

#HDFCLife #TechnoFunda #Trading #Investing #StockMarket

2⃣

Company's products meet various customer needs such as Protection, Pension, Savings & Investment and Health, along with Children's and Women's Plan.

#HDFCLife #TechnoFunda #Trading #Investing #StockMarket

3⃣

🌟#HDFCLIFE Technical Analysis🌟

✅Towards end of November 2020 Stock gave #breakout from Inverted Head & Shoulder Pattern.

✅Soon expected to give breakout from Bullish Rectangle Pattern.

✅Technically Stock Should move up to 950 in medium term.

#HDFCLife #TechnoFunda


4⃣

📈Other Technical Triggers📈

✅Strong Momentum 👉:#Price above short, medium and long term moving averages.

✅Overbought by Money Flow Index (MFI)

✅Stock Price near 52 Week High

#HDFCLife #TechnoFunda #Trading #Investing #StockMarket
HDFCLIFE

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Accounting is the language of business.

If you buy stocks, you MUST learn how to read a Cash Flow Statement.

Here’s everything you need to know:

The cash flow statement shows how cash moves in and out of a company over a period of time.

The most common time periods are:
▪️1 Quarter
▪️1 Year
▪️Year-to-date (usually 6 or 9 months)

The time period is at the top. Here's $NFLX recent cash flow statement time period.


Some companies show the cash flow statement in their earnings press release, but many don’t.

You can find the cash flow statement by looking at:
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▪️10-K (Annual Report)
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Companies get some leeway with how they breakout each segment, but they all follow this basic structure.


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Net Profit vs Cash Flow from operations (CFO) - What is more important?

A short thread with examples

Like & Retweet for better reach !


1. Net income is the profit a company has earned for a period, while cash flow from operations measures the cash going in and out during a company's day-to-day operations i.e., the cash which is generated through its core business.


2. Net income is calculated by subtracting the cost of goods sold, operating expenses, depreciation & amortization, interest expense and taxes from total revenue.

3. Cash flow from operations is calculated by adding the non-cash expenses such as depreciation and amortization to the net profit and then subtracting the changes in working capital.

Now lets understand few differences between Net Profit and Cash Flow from operations (CFO)

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I see a lot of YouTubers treating stock-based compensation as a "non-cash" item they can disregard, but it's essentially a company paying its employees with shareholder money; if they used money from selling shares to cover salaries, you'd see just how real of an expense it is
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Accounting is the language of business.

10 threads that will teach you more about accounting than any accounting degree:

1/ Who: @10kdiver

What: Understand the balance


2/ Who: @SoulFairy3

What: Income statement


3/ Who: @BrianFeroldi

What: Income statement


4/ Who: @AliTheCFO

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@10kdiver Ah thank you. Yeah so strange! Maybe Twitter just hates me.
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Ameda Temple
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#keralatemples

Ameda Ksetram is located in the banks of Vembanad Lake. Temple is very unique and Powerful Sarpa Kavu.
Parashurama did Prathishta here. Vilakku which was lighted by Parasurama is still seen inside the temple.


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At that Sapthamathrukkal 👇


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🕉🙏🕉
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