10+ NeST Digital Interview Questions and Answers

EBIT is earnings before interest and taxes, while EBITDA is earnings before interest, taxes, depreciation, and amortization. EBITDA is considered a better performance metric as it provides a clearer picture of a company's operating performance.

• EBIT excludes depreciation and amortization expenses, while EBITDA includes them.

• EBITDA is often used to analyze and compare the operating profitability of companies in the same industry.

• EBITDA is considered a better performance metric ...read more

The three financial statements are linked through the flow of information and data between them.

• The income statement shows revenue and expenses for a specific period of time.

• The balance sheet shows the company's assets, liabilities, and equity at a specific point in time.

• The cash flow statement shows the inflow and outflow of cash during a specific period of time.

• Net income from the income statement is used to calculate retained earnings on the balance sheet.

• Changes in cash f...read more

Minority interest/ Non controlling interest refers to the ownership of less than 50% of a company's shares by an investor or group.

• It is also known as non-controlling interest (NCI) or minority equity.

• NCI is reported on the balance sheet as a separate line item.

• It represents the portion of a subsidiary's net assets that are not owned by the parent company.

• NCI is entitled to a share of the subsidiary's profits and losses.

• Example: If Company A owns 80% of Company B, then Compan...read more

Direct method shows actual cash inflows and outflows, while indirect method starts with net income and adjusts for non-cash items.

• Direct method directly lists cash receipts and payments, such as cash received from customers or paid to suppliers.

• Indirect method starts with net income and adjusts for non-cash items like depreciation, changes in working capital, and gains/losses on investments.

• Both methods ultimately arrive at the same ending cash balance on the Cash Flow Statem...read more

Capital market is a financial market where long-term securities are traded.

• Capital market is a market for long-term securities such as stocks, bonds, and mutual funds.

• It is a platform for companies to raise capital by issuing securities.

• Types of capital market include primary market, secondary market, and money market.

• Primary market is where new securities are issued for the first time, while secondary market is where existing securities are traded.

• Money market deals with sho...read more

TSO, WASO, and Treasury shares are all related to the number of outstanding shares of a company.

• TSO stands for Total Shares Outstanding and refers to the total number of shares of a company that are currently owned by shareholders.

• WASO stands for Weighted Average Shares Outstanding and is a calculation that takes into account any changes in the number of outstanding shares over a period of time.

• Treasury shares are shares that a company has repurchased and are held in its trea...read more

Basic EPS is calculated using only outstanding shares while Diluted EPS takes into account the potential dilution of convertible securities.

• Basic EPS is calculated by dividing the net income by the outstanding shares.

• Diluted EPS takes into account the potential dilution of convertible securities such as stock options, warrants, and convertible bonds.

• Diluted EPS is always lower than Basic EPS because it assumes that all potential dilutive securities are exercised.

• Companies wit...read more

Financial statements include balance sheet, income statement, and cash flow statement.

• Balance sheet shows a company's assets, liabilities, and equity at a specific point in time.

• Income statement shows a company's revenue, expenses, and net income over a period of time.

• Cash flow statement shows a company's inflows and outflows of cash over a period of time.

• All three statements are important for analyzing a company's financial health and performance.

Yes, I plan to pursue a Master's degree in Data Science to further enhance my skills and knowledge.

• Planning to pursue a Master's degree in Data Science

• Enhancing skills and knowledge in the field

• Seeking advanced education for career growth