Behavioral Finance Biases, Emotions and Financial Behavior

How Behavioral Finance Can Help You Make Smarter Financial Decisions

While traditional finance assumes logic and numbers guide investors, behavioral finance acknowledges that human emotions, psychological biases, and social factors may make us take shortcuts and even cloud our judgment when handling our investments. Behavioral finance aims to pinpoint these factors so that we make better financial choices and create strategies for better investment results. 

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Interest Coverage Ratio

Understanding the Interest Coverage Ratio: A Key Indicator of Financial Health

The Interest Coverage Ratio is a critical metric that provides insight into a company’s ability to manage its debt obligations. Like PE Ratio, PB ratio, or debt-to-GDP ratio, this ratio is essential for investors, creditors, and financial analysts as it helps them assess the risk associated with lending to or investing in a firm. Let’s explore the interest coverage ratio’s meaning, types, interpretation, and importance.

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