Gross Profit Margin and its Interpretation
What is Gross Margin or Gross Profit Margin?Gross profit margin (GP Margin) is the ratio of gross profit to net sales. The other names… Read Article
Profitability Ratios
What are Profitability Ratios?Profitability ratios are the financial ratios that talk about the profitability of a business concerning its sales or investments. Since these… Read Article
Finance / Capital Lease
The capital lease is nothing but an alternative solution to borrowing. Also known as Finance Lease or Full Payout Lease, it is an agreement… Read Article
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 (NWC) is a fundamental financial metric that plays a crucial role in evaluating a company’s short-term financial… 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