Cost of Goods Sold – whats your gross margin like?
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
Inventory Turnover Ratio – Can you do more with less?
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
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 finance assets such as equipment, inventories, and technology, to meet working capital requirements, and to
Net Income – What really matters in business
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
Book Value Per Share – how much are you worth?
WHAT IS THE BOOK VALUE PER SHARE (BVPS)? The ratio of equity available to common stockholders against the number of outstanding shares is called the Book Value per share (BVPS).
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 a stock valuation metric that helps investors and analysts value a stock by taking into
Cash Conversion Cycle – how quickly can you get them?
WHAT IS CASH CONVERSION CYCLE? The cash conversion cycle (CCC) also known as the net operating cycle or the cash cycle measures the length of time taken by a company
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 or a project beyond the final year of the explicit forecast period in a Discounted
Shareholders Equity – how much is your net worth?
WHAT IS SHAREHOLDERS EQUITY? Shareholders equity also known as the net worth of the company is equal to the total value of remaining assets that would be returned to the
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, unearned income or unearned revenue is the advance payment received by a company for the