The weighted average cost of capital (WACC) is the overall cost of capital of a firm derived by a weighted average of the cost of equity, preferred, and debt… Read Article
What is Days Inventory Outstanding (DIO)?Days Inventory Outstanding (DIO) is a financial metric used to measure the efficiency of a company’s inventory management. It… Read Article
What are Equity Investments?Equity investments are nothing but buying the shares of companies. It refers to sharing ownership stakes in a company or business.… Read Article
What is Days Working Capital (DWC)?Days working capital is a very important performance indicator of efficient working capital management. The lower the working capital… Read Article
What is Working Capital?Working capital (WC) is the capital that helps in running the day-to-day operations of a business. It is the gap between… Read Article
The primary limitations of financial statements are their heavy reliance on historical costs, indifference to inflation, being prone to fraud, being easily manipulated, etc.… Read Article
What is a Secured Loan?Secured loans are defined as loans where the lender extends loans only against the deposition of some asset as security.… Read Article
Value of a Firm – DefinitionA firm’s value, also known as Firm Value (FV), Enterprise Value (EV). It is an economic concept that reflects… Read Article
What is Working Capital Management?Working Capital Management is a strategy framed and adopted by business managers to monitor the working capital (working capital means… Read Article
Meaning of Agency TheoryAgency theory examines the relationship between the agents and principals in the business. In an agency relationship, two parties exist –… Read Article