Accounting Profit vs Economic Profit – All You Need To Know
Profit is the most important indicator of the financial health of a company. A company that is not earning a profit is not likely to survive in the long-term. …
Advantages and Disadvantages of Holding Company
Holding company as the name suggests holds the stocks of another company. Such a company does not usually carry any traditional business activities, such as manufacturing or offering services. …
Span of Control
What is Span of Control? The span of control shows the number of subordinates reporting to a manager. This concept is also known as management ratio. For example, a …
Non-financial Performance Measures – Meaning, Importance and More
We all know that studying a company’s financial statements is the best indicator of the financial health of a company. Analysts and investors also consider other financial measures, such …
Financial Distress – Meaning, Reasons, and Tips To Overcome
Financial Distress is a situation when a company is struggling to generate enough profits to meet its financial obligations. There could be various reasons for such a situation. However, …
Financial Breakeven – Meaning, Formula, Examples And More
A breakeven point is when a company is making no profit, no loss, or it is a threshold beyond which the company starts to make a profit. Financial Breakeven …
Internal Growth Rate – Meaning, Importance and More
Internal Growth Rate (or IGR) is the maximum growth rate that the company is confident of achieving without having to obtain funding from outside. This is the growth rate …
Supply Chain – Meaning, Benefits and More
Supply Chain is a network connecting the company and its suppliers for producing and distributing the final product to the end user. This network would include various activities, information, …
Just in Time – Meaning, Features, Advantages and More
Just in Time (or the JIT) is an inventory management system that aims to make production super-efficient. Under this, the raw materials and labor are planned to arrive as …
Angle of Incidence – Meaning, Importance And More
The Angle of Incidence in accounting occurs when the entire sales line crosses the cost line from below in the break-even chart. Or, it is an angle that gets …
