Quick Ratio – Meaning, Formula, Calculation, and Example
What is a Quick Ratio?The quick ratio is a measure of the short-term solvency of a business. Quick or Acid Test ratio is the… Read Article
Net Working Capital
What is Net Working Capital?Net working capital is defined as the difference between the current assets and current liabilities of a business. It is… Read Article
Lease Agreement and its Content
The lease agreement is an agreement documented between the lessor (owner of the asset) and the lessee (user of the asset), stating the terms… Read Article
Debt Service Coverage Ratio (DSCR)
What is Debt Service Coverage Ratio?The debt service coverage ratio (DSCR) is a ratio between cash available to a business and cash required for… Read Article
How EOQ helps in Inventory Management?
Inventory Management, also known as stock management, is crucial for working capital management. Economic Order Quantity is one of the most prominent models used… Read Article
Profit vs. Wealth Maximization
Profit maximization vs. Wealth maximization is a prevalent but very crucial dilemma. Financial management has come a long way by shifting its focus from… Read Article
Macro Environment Factors Affecting Business
Macro environment factors affect a business in many ways. The macro-environment is a dynamic factor and keeps changing drastically, increasing avenues, competition, and complexity.… Read Article
How to Choose Right Source of Finance for Your Small Business?
Factors considered to choose the right source of finance are the Cost of Finance, Attached Risk, Dilution of Control, and Flexibility of Repayment. Comparing… Read Article
Current Ratio – Meaning, Formula, Calculation, and Interpretation
The current ratio is a vital liquidity ratio that measures a company’s liquidity position. It is helpful to the internal finance manager and equally useful… Read Article
How to Evaluate Investments and their Attributes?
Investment Analysis is simply the process of evaluating an investment in each attribute of investments. Evaluation of investment involves evaluating the attributes of investments.… Read Article
Various Avenues and Investments Alternative
Different avenues and investment alternatives include share market, debentures or bonds, money market instruments, mutual funds, life insurance, real estate, precious objects, derivatives, non-marketable… Read Article