Value Added Statements
Value Added Statements are types of vertical financial statements that depict wealth created by an organization and how that wealth is distributed among various… Read Article
Return on Capital Employed (ROCE)
Return on Capital EmployedReturn on Capital Employed (ROCE) is a profitability ratio that helps determine the profit that a company earns for the capital… Read Article
Return on Assets (ROA)
Return on assets (ROA) is a profitability ratio that helps determine how efficiently a company uses its assets. It is the ratio of net… Read Article
Limitations of Ratio Analysis
Ratio analysis is a widely used tool to analyze a company’s performance. Management of the company uses it to see where the company ranks… Read Article
Present and Future Value
The value of money can be expressed as the present value (discounted) or future value (compounded). These both are the concepts of the time… Read Article
Time Value of Money
Meaning of Time Value of MoneyThe term ‘Time Value of Money (TVM)’ implies that there is a connection between ‘time’ and ‘value of money.’… Read Article
What is Benchmarking? Types and Limitations of using it
Benchmarking is a process of measuring the performance of a company’s internal processes and then sizing up against organizations considered best in class. In… Read Article
How to Analyze (Interpret) and Improve Debt Service Coverage Ratio (DSCR)?
The debt service coverage ratio (DSCR) is a very important ratio used extensively by lenders to check if the borrower company has sufficient cash… Read Article
Equity Valuation Methods
Equity valuation methods can be broadly classified into balance sheet methods, discounted cash flow methods, and relative valuation methods. Balance sheet methods comprise book… Read Article
Project or Divisional Weighted Average Cost of Capital (WACC)
Meaning of Divisional or Project Weighted Average Cost of CapitalDivisional or Project Weighted Average Cost of Capital (WACC) is the hurdle rate or discount… Read Article
Earnings Per Share
What is the Definition of Earnings Per Share?Earnings per share are the net earnings of the company earned on one share. It is an… Read Article