Book Value of Equity
Book Value of Equity Meaning The book value of equity more widely known as shareholder’s equity is the amount remaining after all the assets of a company are sold …
Equipment Leasing Companies
Before understanding equipment leasing companies, let us understand the term ‘Lease’ in brief. What is Lease? The term ‘Lease’ refers to a contractual agreement between two parties namely the …
Market Value of Equity
What is Market Value of Equity? A company’s Market Value of Equity is the current market price of company’s share multiplied by the number of all outstanding shares in …
Return on Invested Capital (ROIC)
Definition Return on Invested Capital or ROIC attempts to measure the returns earned on capital invested by a company. It is a profitability ratio and it measures the return …
Days Sales Outstanding
What is Days Sales Outstanding (DSO)? Days sales outstanding is a financial ratio that helps in calculation of the number of days the accounts receivables remain outstanding. It is …
Negative P/E Ratio
Price-Earnings Ratio (P/E Ratio) Before taking the discussion to Negative P/E Ratio, let’s understand the concept of Price-Earnings Ratio or P/E ratio. It expresses the relationship between the price …
Advantages and Disadvantages of Drawing Power
What is Drawing Power? Drawing power is a concept that is used in conjunction with cash credit and overdraft. Banks allow a sanction limit while extending cash credit and …
Advantages and Disadvantages of Packing Credit
Decoding Packing Credit Packing credit is a financial arrangement between an exporter and financial institution. It may be pre-shipment credit or post-shipment credit or both. Pre-shipment credit, as the …
Advantages and Disadvantages of Bank Guarantee
Understanding Bank Guarantee Bank guarantee is a written instrument issued by lending institutions to the beneficiary (to whom the guarantee is provided, generally seller) on behalf of the applicant …
Advantages and Disadvantages of Factoring
What is Factoring? Factoring is a financial arrangement which involves sale of accounts receivable of a business to another party (called ‘factor’) at a discount. It facilitates the seller …