DefinitionReturn on Invested Capital or ROIC attempts to measure the returns earned on the capital invested by a company. It is a profitability ratio,… Read Article
What is Days Sales Outstanding (DSO)?Days sales outstanding is a financial ratio that helps calculate the number of days the accounts receivables remain outstanding.… Read Article
Price-Earnings Ratio (P/E Ratio)Before discussing the Negative P/E Ratio, let’s understand the concept of the Price-Earnings Ratio or P/E ratio. It expresses the relationship… Read Article
Decoding Packing CreditPacking credit is a financial arrangement between an exporter and a financial institution. It is a pre-shipment credit. As the name suggests,… Read Article
Understanding Bank GuaranteeA Bank guarantee is a written instrument issued by lending institutions to the beneficiary (to whom the guarantee is provided, generally the… Read Article
Factoring is a financial arrangement that involves the sale of accounts receivable of a business to another party (called ‘factor’) at a discount. It… Read Article
Financial Statement Notes / FootnotesFinancial statement notes are the additional important information apart from the basic three financial statements. These notes to financial statements… Read Article
Cash credit is a short-term lending facility offered by banks against collateral security, allowing borrowers to withdraw funds in excess of their credit balance.What… Read Article
There are three basic types of financial statements. We categorize another two important parts of an annual report as financial statements. Let’s begin our… Read Article