Introduction  A business, performing its daily operations, generates assets and liabilities over time. The categorisation of assets and liabilities as short-term and long-term depends upon how long the company will

What is the Net Interest Margin? In the banking and financial services industry, investors use different financial ratios to assess the profitability and growth of the companies. One of these

What are Treasury Bills? Treasury Bills, commonly called T-bills, are short-term debt financial instruments. The government issues treasury bills to raise short-term funds from the firms, institutions, banks and the

What is interest expense? Interest is the cost a business incurs for borrowing funds from external parties. Interest is the non-operating expenses, which means interest is not directly related to

What are T-accounts?  T-accounts, called ledger accounts, are a conventional way of recording financial statements in double-entry bookkeeping. T-account looks like a big T dividing the space into two columns.

What is Capital Expenditure (Capex)? Capital expenditures (Capex) refer to the funds a company uses to acquire physical or tangible assets. Companies engage in Capex for two primary reasons: firstly,

Introduction  Leverage ratios are a set of financial relationships which indicate a business’s debt level against its assets and operations. Analysts have numerous leverage ratios to understand the degree of

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