Days Payable Outstanding (DPO) – how long do you have before you pay them
Introduction In the dynamic landscape of financial management, Days Payable Outstanding (DPO) emerges as a
Excel Cheat Sheet – formulas you want to have at the back of your hand
In today’s era, being efficient and productive is significant for a successful career in any
Days sales outstanding (DSO) – How quickly are you recovering your dues?
Introduction In the day-to-day operations of a business, transactions occur frequently, ranging from cash exchanges
Cost of Goods Sold – whats your gross margin like?
Introduction In business finance and accounting, expenses form the most significant aspect of manufacturing, acquisition,
Inventory Turnover Ratio – Can you do more with less?
Introduction Inventory in a business is not limited to stocks and goods, it symbolizes the
Debt Service Coverage Ratio – Are you eating more than you can chew?
Money is the lifeblood of any firm. Funds are crucial because they are necessary to
Net Income – What really matters in business
Understanding net income is essential for anyone involved in finance or running a business. It
Book Value Per Share – how much are you worth?
WHAT IS THE BOOK VALUE PER SHARE (BVPS)? The ratio of equity available to common
PEG RATIO – PRICE/EARNINGS-TO-GROWTH
WHAT IS THE PRICE/EARNINGS-TO-GROWTH – PEG RATIO? The price/earnings-to-growth ratio, or the PEG ratio, is
Cash Conversion Cycle – how quickly can you get them?
WHAT IS CASH CONVERSION CYCLE? The cash conversion cycle (CCC) also known as the net
Terminal Value – how much of total value does it reflect?
WHAT IS TERMINAL VALUE? The Terminal Value is the estimated value of a business, asset
Accrual Accounting – a principle wonder worth remembering
WHAT IS ACCRUAL ACCOUNTING? In Financial Accounting, Accrual accounting is an accounting method in which
Shareholders Equity – how much is your net worth?
WHAT IS SHAREHOLDERS EQUITY? Shareholders equity also known as the net worth of the company
Deferred Revenue – You can have it but not yet earned it
WHAT IS DEFERRED REVENUE? In accrual accounting Deferred Revenue also known as the Deferred income,
Return on Assets – are your making the most of your investments?
WHAT IS RETURN ON ASSETS? Return on assets (ROA) refers to a financial profitability ratio
Profit Margin – how high should it be?
WHAT IS PROFIT MARGIN? A profit margin in accounting and finance relates to a measure
SUMPRODUCT in Excel – a matrix calculation function
WHAT IS SUMPRODUCT IN EXCEL FUNCTION? The SUMPRODUCT in Excel function is found under the
Excel Offset function – a perfect set off to the lookups
WHAT IS EXCEL OFFSET FUNCTION? Offset function returns a reference to a range that is
EV/EBITDA Multiple – do you feel the weight of expectations
WHAT IS ENTERPRISE MULTIPLE? EV/EBITDA also known as Enterprise multiple or EV multiple is a
Operating Cash Flow – The only metric that matters
WHAT IS OPEARTING CASH FLOWS (OCF)? The amount of cash generated by the business from