What Is an Advance Payment in Accounting, and how it Works?
Reading Time: 6 minutesAdvance payment is making a certain payment earlier than is usual such as paying for a particular good or service while the actual receipt will occur at…
Return on Invested Capital (ROIC:): Uses, Valuation Metrics
Reading Time: 4 minutesDefinition Return on Invested Capital (ROIC) defined as a profitability and efficiency of users to invested capital to generate return. There is common among investors as well…
Return on Capital Employed (ROCE):Calculating, Interpreting
Reading Time: 4 minutesBrief on Return on Capital Employed (ROCE) Return on Capital Employed (ROCE) is one of the business profitability measures that evaluates the rate of profitability with the…
Return on Asset (ROA)
Reading Time: 4 minutesReturn on Asset (ROA) is a financial analytical tool that shows efficiency of the company’s operation in terms of assets. This gives clues on how efficiently a…
Business Continuity Plans (BCPs): Elements, Benefits
Reading Time: 8 minutesOverview It must be stated that BCPs are essential in any company. Anything that hinders the business activity for whatever period it takes leads to losses and…
How to shift to eNPS and what is the advantage of it?
Reading Time: 6 minutesWhat is eNPS? eNPS is an Index used in organizations to establish the possibility of the employees recommending the company as an ideal one to work for.…
What is liquidity and how to measure it? Examples
Reading Time: 8 minutesIntroduction Liquidity is a phenomenon related to how easily cash could be obtained from an asset without affecting the price much. It has turned out to be…
Understanding EBITDA & It’s Calculatiion & Uses, vs. EBIT, vs. EBT,vs.EBITA
Reading Time: 7 minutesIntroduction to EBITDA In the financial world of complexities, EBITDA represents a widely accepted measure by which simplification in terms of the profitability assessment can be undertaken.…
How to Create a Budget? Development Process, types, myths
Reading Time: 7 minutesBudgeting is one of the financial procedures that are used to plan on the usage of resources that include money. Budgeting organizes a company’s resources into a…
Factors affecting Revenue Per Employee, Payroll Headcount Ratio
Reading Time: 6 minutesPay per head and payroll multiplier are significant indicators through which organizational efficiency, productivity as well as financial performance is measured. They give information on the levels…
Understanding Return on Sales (ROS) and Operating Margin, Applications
Reading Time: 4 minutesIntroduction Return on Sales (ROS) and Operating Margin are fundamental and significant business and financial indices that allow analyses of the efficiency and profitability of companies and…
Net Profit Margin: Formula, Example, vs. Gross Profit margin
Reading Time: 4 minutesUnderstanding Net Profit Net Profit Margin is another basic and essential finance factor that calculates remaining profit attained after paying cost of operations, interest, taxes, and all…
Operating Cash Flow Ratio – overview, uses, Formula, calculation, Example
Reading Time: 4 minutesOverview: The Operating Cash Flow (OCF) Ratio is one of the most important financial ratios which determine the ability of a company to continue meeting its operating…
Gross Profit margin – Overview, Formula, Revenue, Examples, Applications
Reading Time: 5 minutesIntroduction Gross Profit Margin is simply defined as the ratio of total gross profit to total net sales or simply the gross profit earned for every dollar…
Understanding Days Payable Outstanding (DPO): Formula, Pros & Cons, High DPO, and Low DPO
Reading Time: 7 minutesDays Payable Outstanding is one of the most important financial measures, which plays a vital role in the assessment of a company’s operational efficiency, liquidity, and cash…
What is the difference between accounting and finance?
Reading Time: 7 minutesAccounting and finance are buzzwords commonly heard in discussions over money management, strategic plans, and organizational success. Although accounting and finance are two related concepts, their scope,…
What is Knowledge Process Outsourcing (KPO)? Types,Advantages,disadvantages
Reading Time: 8 minutesGlobalization has brought forth different versions of the modernized and technologically advanced world in the economy. Hence, a business is always seeking ways through which it can…
Understanding Management by Objectives (MBO) Goals, Steps, Pros and cons
Reading Time: 8 minutesMBO, or Management by Objectives, is one of the most widely used approaches that brings management in focus related to the improvement of organizational performance through explicit…
Business Cycle / economic cycle: How to Measure It, 4 stages
Reading Time: 6 minutesBusiness cycle, also known as the economic cycle, is the cyclical nature of the relative rise and fall of economic activity over a definitive period. These cycles…
Understanding Key Performance Indicators (KPIs) and Their Importance for Business
Reading Time: 7 minutesKPIs provide measurement for how the organization is doing or how well things are being accomplished. In a more general sense, they give the possibility of evaluating…
How to conduct effective company profiling
Reading Time: 5 minutesWhat is Business/company profiling? Company profile is a description of the story of the company, giving an impression about values, mission, and goals. The key aim here…
Importance of Brand Identity in Company Profiles
Reading Time: 2 minutesWHAT DOES BRAND IDENTITY MEAN? Brand identity is the unique set of elements that a company uses to portray its image in front of the public. It…
Importance of Market Positioning in a company profile
Reading Time: 3 minutes WHAT DOES MARKET POSITIONING MEAN? Market positioning refers to the strategic process that a brand, product, or company undertakes to establish and position itself within the…
How to Conduct a Comprehensive Company Analysis
Reading Time: 4 minutesCompany analysis is one of the most important tools that investors, stakeholders, and potential partners need to assess how a business performs, what its strengths and weaknesses…
Role of SWOT Analysis in Company Profiling
Reading Time: 3 minutesThe position of a company in its industry has been seen as an essential part of strategic decision-making within today’s dynamic business environment. It is one of…
What are Assets, Capital and Liabilities?: types
Reading Time: 3 minutesThe three main elements of a company ‘s financial structure- assets, capital, and liabilities – show essential knowledge about its financial position. Assets refer to anything that…
Assets Vs Liabilities
Reading Time: 4 minutes What is an Asset? Assets are resources owned by a business that helps in maintaining a stable financial condition or making profits into the future. They…
Market Structure
Reading Time: 4 minutesMarket Structure is the way in which industries are classified and differentiated according to the nature and intensity of competition for goods and services within them. It…
Company Profile
Reading Time: 2 minutesCompany profile is a description of the story of the company, giving an impression about values, mission, and goals. This is significant for not only large companies…
Valuation Techniques: Comparable Company Analysis (Comps)
Reading Time: 4 minutesVALUATION TECHNIQUES Valuation is a process of determining the present or future worth of any asset or company. The valuation technique, in turn, is the process of…