The Kagi chart is a graph that displays the price fluctuations of a certain asset over a period of time. A Kagi chart varies completely from a candlestick chart or other traditional forms of charts as it does not have a time axis, which helps it to display price movements more efficiently. Kagi charts are statistical tool used to help in technical analysis. It has been developed in Japan and used extensively worldwide by traders.What are the uses of Kagi Charts?A Kagi chart depicts the Price fluctuations of an item by using a number of vertical lines that are connected ... Read More

The isoquant curve is characterized by a concave shaped line graph that measures all the components of inputs, that contribute to a specific amount of output production. They are usually employed in the study of Microeconomics as a measure to evaluate the most commonly studied inputs of capital and labor, and the impact they have on manufacturing.An example illustration of an isoquant curve below −The isoquant curve aids corporations and enterprises in making modifications to inputs in order to optimize output and, therefore, profit.Companies and enterprises use the isoquant curve to make modifications in inputs to maximize manufacturing, and thus ... Read More

What is the Bond Pricing System?Bond pricing is a measurement system that helps traders and financial enthusiasts keep track of bond prices before trading bonds with other investors. The price that one has to pay while purchasing the bond is the price of the bond and it is dependent on several factors likeThe following are some of these characteristics −The existence of a coupon, or the absence of oneValue of the main and parReturn on investment (ROI)Periods of development till maturityBond Pricing − What factors impact it?Coupons$$\frac{1-(1+r/n)^{-n*t}}{r/n}+\frac{F}{{1+(1+r/n)^{-n*t}}}$$Formula to calculate coupon bond price.Some bands come with the coupons while others do ... Read More

Bollinger Bands are a technical trading system developed by John Bollinger in the early 1980s to help traders calculate price movements. These trading bands were developed in response to the necessity for adaptive trading bands and the detection that volatility was dynamic, rather than static as was normally assumed at the time.Source − Tradingview. Chart of Ketner Channel & Bollinger BandsBollinger Bands are a technical indicator that are used in many financial markets, including stocks, currency, commodities, and futures trading. They may be utilized in a variety of time frames, ranging from very short time periods to hourly, daily, weekly, and ... Read More

Operation cycle method considers total cycle of operations, from raw materials to finished goods, from accounts payable to net cash.The times taken to complete these operations are called operating cycle time.If the operating cycle is long then, requirement of working capital is less, if the operating cycle is less then, requirement of working capital is less.FormulasWorking capital = CGS(E)* D/365 + CBHere, CGS (E) = estimated cost of goods sold, D = days in operating cycle, CB = Cash/Bank balanceRM Stock = PU(E) * Cu * (Hp/365)Here, PU(E) = production units estimated, Cu = cost per unit, HP = holding ... Read More

In regression analysis method, statistical tool is used to calculate working capital.CalculationsWorking capital = Int + m*R            Int = intercept, m = slope, R = RevenueΣy = na + bΣxΣxy = aΣx + bΣ2            Where x = sales, y = working capital, n = yearsAdvantages of this method include −Accurate method for bigger volume of data.It is a proven method.Disadvantages of this method include −Not east to understand.Calculations are complicated as compared to percentage sales method.ExampleBy using following table, calculate the data using regression analysis method, forecasted sales = 500YearSales ... Read More

Percentage of sales method is the traditional method to find out working capital. This method is based on historical relationship between sales and working capital. Each of historical value is converted to percentage of net sales and those values are used to forecast.Steps involved in this method are −Determine historical relationship between sales and working capital.Forecast sales for future date.Apply percentage sales of method to get forecasted value.FormulaPercentage of sales method = WCc*100/S Here WCc = components of working capital, S = yearly salesAdvantages of this method are −Easy to understand.Calculations are simple.Disadvantages of this method are −Relationship between sales ... Read More

Appraisal methods are categorised into two types. Each method has its own merits and de-merits. One of the methods used by companies are modern methods which are divided into following typesMBOMBO means Management by Objectives. This concept was developed by Peter F.Drucker in 1954. It is the process where, both superior and subordinates identifies goal for each individual and define those by identifying their areas of responsibilities.This method follows goal setting, performance, comparison and reviews. Its main drawbacks are setting un measurable goals, time taking, no trust.Behaviour anchoredIt varies with performance dimensions. Benefits are combinations of narratives, critical and quantified. ... Read More

Appraisal methods are categorised into two types. Each method has its own merits and de-merits. One of the methods used by companies are traditional methods, which are divided into following types −Ranking method − It is the oldest method used in performance appraisal. In this method, employees are ranked according to their order of worth. It is difficult to rank individually if the employee number is large.Paired comparison − In this method, employees are compared according to one trait. Score of employee is based on their consideration on that particular trait. Better employee is ticked among others. The more the ... Read More

An appraisal is the process of conducting a fair analysis to evaluate an asset, a business, an organization or a performance based on certain standards. A qualified person called an appraiser does appraisal. It is done whenever properties need to be sold and its value is determined for tax obligations for a business.Types of appraisal includeBusiness assets − Mainly, this type of appraisal is done at the time of ceasing operations. Book value is determined. In this business, liabilities are subtracted from its assets.Capitalization − This is the most common method used by appraisers. In this method, past earnings are ... Read More