Introduction Investors and analysts are interested in understanding the financial health and profitability of a company. They use a financial metric called Return On Equity (ROE) to measure how effectively

Introduction  A business is involved in numerous activities, like production and business operations. In the previous articles, we have understood COGS as the funds used to sustain the production of

Introduction  In taxation, we hear numerous terms like statutory tax rate, effective tax rate, tax liability, marginal tax, etc but we fail to understand the intricacies of these terms. Effective

Introduction Operating expenses form the backbone of every business, encompassing essential costs incurred to sustain daily operations. Understanding operating expenses is paramount for investors and analysts, offering valuable insights into

Introduction In the dynamic landscape of financial management, Days Payable Outstanding (DPO) emerges as a crucial indicator of a company’s financial stability and operational efficiency. DPO measures the average number

Introduction In the day-to-day operations of a business, transactions occur frequently, ranging from cash exchanges to credit agreements. While cash transactions ensure immediate liquidity, credit transactions can tie up funds,

Introduction In business finance and accounting, expenses form the most significant aspect of manufacturing, acquisition, and product pricing. These expenses are categorised as direct and indirect expenses. As the keystone

Introduction Inventory in a business is not limited to stocks and goods, it symbolizes the flow of resources, supply and demand and a firm foundation of customer satisfaction. Inventory turnover

Money is the lifeblood of any firm. Funds are crucial because they are necessary to finance assets such as equipment, inventories, and technology, to meet working capital requirements, and to

Understanding net income is essential for anyone involved in finance or running a business. It serves as a fundamental measure of a company’s profitability and financial health. Net income, often