Ratio Analysis
Ratio Analysis: MeaningRatio analysis is a technique for evaluating financial statements or, to say, for detailed analysis of the financial statements presented by the… Read Article
Profitability Ratio
Net Assets vs. Capital Employed
Net Assets and Capital Employed: MeaningWe often need to know the financial health of a company. There are various metrics we use to assess… Read Article
Importance of Ratio Analysis
Ratio Analysis: MeaningRatio Analysis is a method to understand the liquidity position, efficiency of operations, profitability position, and solvency of a business organization. It… Read Article
Contribution Margin vs Operating Margin
What do we mean by Contribution Margin and Operating Margin?The contribution margin is the net turnover minus the variable share of the total cost… Read Article
Contribution Margin vs Gross Margin
What do we mean by Contribution margin and Gross margin?Contribution Margin and Gross Margin are two important concepts in Management Accounting. They also help… Read Article
Basic Earning Power Ratio
The basic earning power ratio is the relationship between the earning power of a company and its assets.Basic Earning Power Ratio – RationaleTotal AssetsTo generate… Read Article
Gross Profit Percentage – Meaning, Example, Advantages and more
What is the Gross Profit Percentage?Gross profit (GP) percentage is a measure of a firm’s profitability at a gross level. It is expressed in… Read Article
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… Read Article
ROI vs ROE – All You Need To Know
Analysts across the globe use ratios such as Return on Equity (ROE) and Return on Investment (ROI) to identify the investment potential. Although both… Read Article
How to Calculate Diluted EPS
Elaboration of the need to calculate Diluted EPS arises from the factor needed to value a company so as to obtain financial figures to… Read Article
ROI Analysis – What It Is And Why It’s Important?
The analysts use return on Investment or ROI Analysis to assess the profitability of an investment in detail. Analysts also use it for comparing… Read Article