Debt Ratio
What is the Debt Ratio? The debt ratio determines the relative proportion of debt to total assets; it measures the proportion of debt used… Read Article
Insider Trading
What is Insider Trading?Illegal insider trading is defined by the U.S. Securities and Exchange Commission (SEC) as the “buying or selling a security, in… Read Article
Double Declining Depreciation
Double Declining Depreciation MethodThe double-declining depreciation is an accelerated depreciation method where the depreciation expense amount decreases with the age of the asset. The… Read Article
Straight Line Depreciation
The straight-line depreciation method is the simplest method for calculating an asset’s loss of value or, in other words, depreciation over a period of… Read Article
HR Due Diligence
What is HR Due Diligence?During a merger or an acquisition, the acquirer also takes on the human capital of the company. The process of… Read Article
Selling, General and Administrative Expenses – All You Need To Know
Selling, general and administrative expenses (or SG&A) are the total of both direct and indirect selling expenses in addition to the administrative expenses. The… Read Article
Overhead Costs – Types, Importance, and More
What is Overhead a Cost?Overhead are the business costs that are crucial for the day-to-day running of the business, but one can’t attribute these… Read Article
Unit of Production Depreciation
The decrease in the value of an asset due to normal wear and tear, time effect, obsolescence, etc., is called depreciation. Amortization is also… Read Article
Discount Rate – Meaning, Importance And More
A discount rate is a crucial concept in finance and could mean two things. The first is about the interest rate that the central… Read Article
Sunk Cost – Meaning, Dilemma, Examples, And More
What is the Sunk Cost?The cost that a company has already incurred and can’t be recovered is known as Sunk Cost. These costs are… Read Article
Financial Due Diligence – Importance, Scope and Requirements
What is Financial Due DiligenceFinancial due diligence basically means deeply analyzing the overall financial health of the target company before making a merger, acquisition,… Read Article