investment
- Business
Real Estate Investment Trusts
Investing in real estate is often associated with high capital requirements, such as purchasing commercial buildings or residential properties. For retail investors with limited capital, entering the real estate market can seem challenging. However, Real Estate Investment Trusts (REITs) provide a solution by allowing people to invest in real estate without directly owning physical assets. This article will discuss the…
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EBITDA: How to Understand Operational Profit
EBITDA is one of the essential financial indicators used to assess a company’s performance. This term is frequently used by financial analysts, investors, and management to understand how efficiently a company generates profits from its core operations. This article will discuss what EBITDA is, how to calculate it, why it is important, and some criticisms of its use. What is…
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Return on Assets (ROA): Are Your Assets Maximized?
In the modern business landscape, ensuring efficient utilization of company assets is essential for long-term profitability and competitiveness. One key metric that helps measure how effectively a company is using its assets is Return on Assets (ROA). ROA provides insights into how much profit a business generates from its assets, making it a valuable tool for management, investors, and stakeholders.…
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Return on Equity: How Shareholders Measure Their Returns
Return on Equity (ROE) is one of the most widely used financial metrics by investors to assess the profitability of a company. It provides a clear picture of how efficiently a company is using its shareholders’ equity to generate profits. In simpler terms, ROE shows how much profit a company makes with the money shareholders have invested. This article will…
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Project Based vs Equity Based Financing
In project financing, two common methods are Project Based Financing and Equity Based Financing. These methods differ significantly in how funds are allocated and risks are managed. This article explores both financing methods, focusing on their application within Islamic finance principles, and highlights their advantages and disadvantages. Project Based Financing: Focus on Specific Projects Project Based Financing is a method…
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Important Principles on How Islam Views Investment
Investment is a widely accepted way to grow wealth and achieve financial stability. In Islam, investment is not only allowed but also encouraged, provided it adheres to Shariah principles, which emphasize justice, transparency, and the avoidance of prohibited elements such as riba (interest), gharar (uncertainty), and maysir (excessive speculation). This article explores how Islam views investment and how Muslims can…
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Price to Book Value: Is Your Stock Overvalued?
Investing in stocks is a popular strategy to build wealth over the long term. However, determining whether a stock is worth buying can be a challenge for many investors. One of the most common methods to evaluate whether a stock is overpriced or still worth buying is by using the Price to Book Value (PBV) ratio. In this article, we…
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Net Present Value: Important to Know The Impact of Time on Your Investment Value
Net Present Value (NPV) is a commonly used method for evaluating the feasibility of an investment. By calculating NPV, investors can determine whether an investment will be profitable or not. NPV takes into account the time value of money—meaning that money received today is worth more than the same amount received in the future. One of the critical factors influencing…
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Price to Earnings and Its Importance for Investors
The Price to Earnings (P/E) Ratio is a fundamental analytical tool in the investment world. This ratio not only provides insight into stock value but also reflects the market’s perception of a company’s past performance and future expectations. With a multitude of investment options available, understanding the P/E Ratio can assist investors in making more informed and strategic decisions. Definition…
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Importance of Financial Ratios for Investment
Financial ratios are crucial tools in assessing the financial health of a company, especially for investors. These ratios provide a clear picture of a company’s financial condition, enabling investors to make more informed decisions. By analyzing financial ratios, investors can identify a company’s performance, risks, and potential for profit. This article explains the significance of financial ratios for investment and…
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