Are You Profiting from Your Core Operations?

ACCA, CIMA, CPD, FRM | by Abhijit Biswas

The Coca-Cola Company, a beverage company, reported an operating profit of $11,150 million and a net income of $9,804 million for the year ended on December 31, 2021, while PepsiCo, Inc., one of the closest competitors of Coca-Cola, reported an operating income of $11,712 million and a net income of $7,679 million for the same reporting period. Comparing dollar values may not make much sense.
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Financial Ratios - A Tool for Meaningful Comparisons

ACCA, CIMA, CPD, AAT, FRM | by Abhijit Biswas

As of 31st May 2021, Nike, Inc. reported current assets of $26,291 million and current liabilities of $9,674 million. We can find the relationship between these two metrics by dividing current assets by current liabilities. The alternative ways of stating the relationship are as follows:
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Series A Funding: Lifeline to a Startup’s Journey to Growth

| by Abhijit Biswas

Mio, a startup, helps enterprise teams collaborate across messaging services like Zoom Chat, Microsoft Teams, Slack, and Cisco’s Webex.  On December 9, 2021, Mio announced that it has raised an $8.7 million Series A funding, led by Zoom and Cisco Investments. In total, Austin-based Mio has now raised $17 million. Other investors include Goldcrest Capital, Eniac Ventures, Two Sigma Ventures, Khosla Ventures, Y Combinator, and Capital Factory1. At this point, you might be wondering what’s Series A funding. Let me decode it for you with the help of a hypothetical startup.
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Sources of Finance - Debt, Equity & Hybrid

ACCA, CIMA, CPD, AAT, FRM | by Abhijit Biswas

Amazon.com Inc. reports total assets of USD 321,195 million, total liabilities of USD 227,791 million, and total equity of USD 93,404 million in its balance sheet dated December 31, 2020. Based on the reported numbers, Amazon has a debt-to-equity ratio of 2.44 times. Sounds a bit technical, right? Let me decode it for you.
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YoY Analysis: Is A Company Growing or Shrinking Annually?

ACCA, CIMA, CPD, AAT, FRM | by Abhijit Biswas

Amazon directly competes with eBay in the U.S. online shopping landscape. In 2020, Amazon achieved 38 percent YoY net sales revenue growth whereas eBay's YoY revenue increased by 19 percent. Wondering what’s YoY, right? Let me decode it for you.
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Topics under "Current Issues in Financial Markets" in FRM Part 2 Exam

FRM, FRM Course | by Abhijit Biswas

"Current Issues in Financial Markets" is one of the six broad topics that GARP tests in its FRM Part 2 exam. This broad topic has a 10% weight in the exam. This means out of 80 questions asked, you may expect 8 questions from this section. This area focuses on current issues that have a strong impact on financial markets. The broad knowledge points covered in "Current Issues in Financial Markets" include the following:
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Topics covered in Market Risk Measurement and Management of FRM Part 2 Exam

FRM, FRM Course | by Abhijit Biswas

“Market Risk Measurement and Management” is one of the six broad topics that GARP tests in its FRM Part 2 exam. This broad topic has 20% weight in the exam. This means out of 80 questions asked, you may expect 16 questions from this section. This area focuses on market risk measurement and management techniques. The broad knowledge points include the following:
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FRM Part 2: Topics under Liquidity and Treasury Risk Measurement and Management

FRM, FRM Course | by Abhijit Biswas

"Liquidity and Treasury Risk Measurement and Management" is one of the six broad topics that GARP tests in its FRM Part 2 exam. This broad topic has a 15% weight in the exam. This means out of 80 questions asked, you may expect 12 questions from this section. This area focuses on methods to measure and manage liquidity and treasury risk. The broad knowledge points covered in the Liquidity and Treasury Risk Management section include the following:
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Topics covered in Operational Risk and Resiliency of FRM Part 2

FRM, FRM Course | by Abhijit Biswas

"Operational Risk and Resiliency" is one of the six broad topics that GARP tests in its FRM Part 2 exam. This broad topic has 20% weight in the exam. This means out of 80 questions asked, you may expect 16 questions from this section. This area focuses on methods to measure and manage operational risk as well as methods to manage risk across an organization, including risk governance, stress testing, and regulatory compliance. The broad knowledge points covered in Operational Risk and Resiliency include the following:
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Topics covered in Credit Risk Measurement & Management of FRM Part 2

FRM | by Abhijit Biswas

"Credit Risk Measurement and Management" is one of the six broad topics that GARP tests in its FRM Part 2 exam. This broad topic has 20% weight in the exam, which means out of 80 questions asked, you may expect 16 questions from this section. This area focuses on a candidate's understanding of credit risk management, focusing on structured finance and credit products such as collateralized debt obligations and credit derivatives. The broad areas of knowledge covered in readings related to Credit Risk Measurement and Management include the following:
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