What is the Sharpe Ratio and how to calculate it?

The Sharpe Ratio is a ratio that measures the profitability There is an excess average (difference between the profitability of a given portfolio and that of a risk-free asset), per unit of total risk that a portfolio can bear. This meter can indicate the quality of a Investment fund, since it compares them with others … Read more

Definition of Residual Value

Oneaccounting terms, When an asset (real estate, equipment, transport vehicle …) has been used for years, it is normal that it has lost its value, that is, it has suffered a depreciation. That last value that an asset has at the end of its useful life is what I know as residual value. Any asset, … Read more

What is a Reinsurance?

Reinsurance is the contract signed by a reinsurer pursuant to a contract signed by an insurer, assuming part of the risk that it entails. In this way, all that candeteriorate A certain insurance will be distributed between both companies (the insurance company and the reinsurer). Reinsurance allows offering greater confidence and support to insurance companies, … Read more

What is rounding?

Rounding is a process by which numbers or digits are reduced to a certain numerical value. Normally, the concept of rounding implies that in business accounting matters the decimal numbers will be reset by proximity, either higher or lower, to produce a closer and more accurate numerical value. Rounding rules Thus, the meaning of rounding … Read more

What is the PEG ratio

The PEG (Price / Earnings to Growth, or also known as Price / Earnings to Growth) ratio shows the years of benefits or the time required for a company to recover the money it invested in buying its shares if the profit from the acción it would have been constant. How is the PEG ratio … Read more

What is retirement?

It is the action in which a person ceases their work activities and becomes inactive for different reasons, such as age or physical problems that prevent them from continuing to work. At the end of your Laboral life people have no income from their work. That is why retirees receive a monthly pension for life. … Read more

What is ROA?

The definition of ROA is economic profitability or profitability of the assets. It is the acronym for Returns on Assets. What is sought with the concept of ROA is to measure the profitability of the company. The formula for calculating ROA is very simple. It would be the profits of a company between assets or … Read more

What is reshoring?

Reshoring is an increasingly common trend, especially among companies that had opted for reshoring. relocation of part or all of its production towardsemerging countries. Also known by the name of backshoring, reshoring is therefore based on the return to the country of origin of previously relocated production processes. Origin of reshoring For a long time, … Read more

What is the rating?

The concept of rating refers to the representative index of the level of risk with which the debt issues of companies are rated. To make this judgment, they take as a reference both the historical valuation and the expectations that are expected in the future. The assessment carried out on the financial risk the obligations … Read more

What is the Retail Trade Index (ICM)?

El retail It is one of the most determining valves of the economy of a country, and for this reason, it is essential to carry out periodic reports to control its evolution and its influence on the growth rate general. The Retail Trade Index (ICM) is a conjunctural indicator that helps to understand how this … Read more