Financial

Sharp Ration

Category: Financial

Sharpe Ratio

In order to be sound in your financial goals, you need to have a great source of knowledge on every possible investment practice and technique....

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Asset Coverage Ratio

Category: Financial

Asset Coverage Ratio

This article covers the far-reaching topic of the asset coverage ratio. We’re talking about a risk measurement whose aim is to calculate a company’s capability...

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Average time to find a hire

Category: Financial

Average Time to Find a Hire

OKRs are the most prominent task and performance management tool that allows organizations to manage the overall performance of the employees. The HR department being...

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Cost per Hire

Category: Financial

Cost per Hire

Cost per hire refers to the amount of money your company spends to hire recruiting talent. The total cost spent to recruit a talent covers...

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Knowledge achieved With Training

Category: Financial

Knowledge achieved With Training

Each entrepreneur is concerned about the prosperity of their business. And a business’ prosperity is naturally linked with the productivity and preparation level of its...

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Total Visits

Category: Financial

Percentage of Employees Trained in Company Culture

A company needs to perform well, and if you’re an owner, you know a lot about that. Not only you need to generate sales targets...

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Return on Assets

Category: Financial

Return on Assets

The return on total assets can show if the managing team is effective at earning money from the company’s assets in a certain amount of...

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Retention Ratio

Category: Financial

Retention Ratio

The retention ratio or plow back ratio is the calculation that shows you exactly what percentage of your net income is retained for the business...

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Residual Income

Category: Financial

Residual Income

Residual income refers to the amount of money that is left after all the expenses have been paid for a period. The residual income can...

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Receivables Turnover Ratio

Category: Financial

Receivables Turnover Ratio

To start with, the accounts receivable turnover represents an efficiency ratio. Thus, its main purpose is to assess the number of times a firm can...

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R-Squared (R2)

Category: Financial

R-Squared (R2)

Also known as the coefficient of determination, r-squared is the statistical measurement that comes from the correlation made between the performance of a certain investment...

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Quick Ratio – Acid Test

Category: Financial

Quick Ratio – Acid Test

The quick ratio, also known as acid test ratio, is used to measure a company’s ability to pay off its current liabilities when these come...

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First Year Voluntary Termination Rate

Category: Financial

Profit Margin Ratio

In order to measure the amount of net income earned by a company with each dollar sales that are generated we use the profit margin...

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Price to Sales

Category: Financial

Price to Sales

Also a financial metric, the price to sales ratio is used to measure the value that the investors put on a certain company for each...

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Price to Earnings P/E Ratio

Category: Financial

Price to Earnings P/E Ratio

In today’s post, we’d like to focus our attention on the price to earnings ratio. This is a prospect ratio that calculates a stock’s market...

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Total Visits

Category: Financial

Price to Cash Flow

The price of a company is compared to the underlying cash flow by using the Price to Cash Flow profitability ratio, also abbreviated as P/CF....

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Price to Book Ratio

Category: Financial

Price to Book Ratio

The price to book ratio is renowned as an important financial valuation tool. Essentially, it is utilized in an attempt to appraise if a stock...

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Present Value (PV)

Category: Financial

Present Value (PV)

The present value is, many times, referred to as the discounted value – and it a widely used financial formula. So, what it is used...

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Preferred Dividend Coverage Ratio

Category: Financial

Preferred Dividend Coverage Ratio

This article will focus on presenting the specifications of the preferred dividend coverage ratio. This ratio assesses a corporation’s financial capability of paying the dividends...

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PEG Ratio

Category: Financial

PEG Ratio

What does the PEG ratio stand for? Why is it used and how could we define it? This article focuses on answering these specific questions....

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Payback Period

Category: Financial

Payback Period

The payback period is a financial capital budgeting method that estimates the amount of time needed for an investment to generate cash flow and replace...

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Accounts Payable Turnover Ratio

Category: Financial

Accounts Payable Turnover Ratio

The accounts payable turnover ratio is a liquidity ratio that indicates the ability a company has to repay its accounts payable. The repayment is done...

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First Year Voluntary Termination Rate

Category: Financial

Operating Leverage

If you’ve accessed this page, you are probably eager to find out more about operating leverage. Well, operating leverage is a financial efficiency ratio that...

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Asset Turnover Ratio

Category: Financial

Operating Income

If you clicked on this article, you’re probably interested in operating income and what it means. Well, it will tell you what you need to...

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Web Traffic Concentration

Category: Financial

Operating Cash Flow

If you’re a beginner when it comes to finances, you would probably want to know what the operating cash flow means. Basically, it’s an efficiency...

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Cycle Time to Process Payroll

Category: Financial

Net Operating Profit After Tax

If you wanted to know what the Net Operating Profit after Tax is and how it works, you came to the right place. Net Operating...

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Successful to unsuccessful tenders

Category: Financial

Net Working Capital

Ever heard the term “networking capital”, but you didn’t know what it means? If that’s the case, this article comes to your aid. The net...

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Net Profit Margin

Category: Financial

Net Profit Margin

The net profit margin is used to find out whether a business is poorly managed and to see future profitability. By comparing the total sales...

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Net Present Value (NPV)

Category: Financial

Net Present Value (NPV)

The net present value is used to calculate the difference between the cash inflows and outflows of a potential investment or project. To make it...

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Net Operating Income

Category: Financial

Net Operating Income

If you work for a real estate agency, you may have heard about net operating income. This is a profitability formula that is used to...

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Net Interest Margin

Category: Financial

Net Interest Margin

How well you administer your money is mainly up to you. However, the net interest margin ratio is a term that shows you how well...

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First Year Voluntary Termination Rate

Category: Financial

Net Income

Net income also known as bottom line or net profit- is the amount of money that remains after you pay all debt and expenses within...

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Net Fixed Assets

Category: Financial

Net Fixed Assets

Ever wondered how much 100 gums cost 20 years ago compared to today? Such calculations are simple, but for a company that could lose everything,...

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Return on Capital Employed

Category: Financial

Return on Capital Employed

To better understand what the return on capital employed means, first we need to understand what the capital employed is. By employing capital, you will...

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Total Visits

Category: Financial

Long Term Debt to Assets

When it comes to being in debt, no one likes that, especially companies, where “profit” is the most used word. They may put you in...

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Net Debt

Category: Financial

Net Debt

Everybody must know and check their financial situation on a regular basis. Some people check their wallets or credit cards daily. But when you rule...

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Marginal Revenue

Category: Financial

Marginal Revenue

This is a term used in microeconomics, and it’s quite a well-known formula. However, in order to get a better understanding of what marginal revenue...

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Margin of Safety

Category: Financial

Margin of Safety

Everybody needs to break even, so this ratio will give you the insight of what goes too much or too little. In other words, the...

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Loan to Value

Category: Financial

Loan to Value

Abbreviated as LTV, the loan to value ratio is a risk assessment measurement. It is used to calculate the amount that has been loaned as...

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Internal Rate of Return

Category: Financial

Internal Rate of Return

The internal rate of return, also abbreviated as IRR, is used to identify which future projects or capital investments will have an acceptable return –...

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Interest Coverage Ratio

Category: Financial

Interest Coverage Ratio

The financial ratio known as interest coverage ratio determines whether a company is able to make interest payments on its debt or not and that...

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First Year Voluntary Termination Rate

Category: Financial

Gross vs. Net

Gross and net usually refer to income and it is also something that seems quite difficult to understand for some people. For example, you might...

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Gross Profit

Category: Financial

Gross Profit

The profitability ratio called gross profit (also known as gross profit margin) is used to calculate the percentage of sales that are exceeding the costs...

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Goodwill to Assets

Category: Financial

Goodwill to Assets

The financial measurement called goodwill to assets is used to compare the intangible assets of a company – like a customer list, brand name, and...

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Total Visits

Category: Financial

Free Cash Flow

Usually abbreviated as FCF, the Free Cash Flow is an efficiency as well as a liquidity ratio. It calculates how much money a company is...

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Fixed Charge Coverage Ratio

Category: Financial

Fixed Charge Coverage Ratio

Whether a company is able to pay off its fixed charges or expenses with its own income or not – before income taxes and interests...

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Fixed Asset Turnover Ratio

Category: Financial

Fixed Asset Turnover Ratio

If you’re wondering what this ratio is, you’re just about to find out. It’s an efficiency ratio that measures a firm’s return on their investment...

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Return on Equity

Category: Financial

Return on Equity

Before we engage in explaining the formula, you need to know what the difference between a shareholder and a stakeholder is. A shareholder holds a...

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Expense Ratio

Category: Financial

Expense Ratio

Have you heard the term “expense ratio”, but it confused you? In that case, you’ve come to the right place, because you’re going to find...

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Return On Invested Capital

Category: Financial

Return On Invested Capital

If you are the accountant of a business, there are certain things that you may want to keep in mind –one of these things being...

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Equity Ratio

Category: Financial

Equity Ratio

An equity ratio calculates the number of assets financed by owners’ investments. Basically, it does so by comparing the total equity in the company to...

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First Year Voluntary Termination Rate

Category: Financial

Return on Investment

As an investor, you will want to know that the company you are placing your bets on will bring a high return. Regardless of you...

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Return On Net Assets

Category: Financial

Return On Net Assets

RONA - It may sound like some fancy name for a fancy person, but it’s actually the name of a finance formula – albeit one...

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Equity Multiplier

Category: Financial

Equity Multiplier

You may be wondering what equity multiplier means. Well, it’s a leverage ratio that basically measures the part of the company’s assets financed by equity....

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Total Visits

Category: Financial

Return On Operating Assets

A company needs a fair number of operating assets in order to continue functioning. This is practically what keeps the company going. The return on...

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Return On Retained Earnings

Category: Financial

Return On Retained Earnings

The amount of money you allocate for the growth of the company tells a lot about the growth potential of a company, as well as...

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Return on Sales

Category: Financial

Return on Sales

This financial ratio is used to show how efficient a company is at using its revenue in order to generate profits. Also called the operating...

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Category: Financial

Rule of 72

If you want to see for how long you have to invest your money in order to double it, with a given interest rate, then...

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Sales to Admin Expenses

Category: Financial

Sales to Admin Expenses

This efficiency ratio is used to measure if a company is efficient at managing its non-operating expenses in order to generate sales during the normal...

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Enterprise Value explained

Category: Financial

Enterprise Value explained

The enterprise value (EV) is a direct representative of the economic value of a company – in other words, how much money someone would have...

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The basics of EBITDA

Category: Financial

The basics of EBITDA

When you want to understand how a certain company thrives in a particular industry, you need to have certain formulas in mind. An acronym for...

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First Year Voluntary Termination Rate

Category: Financial

Sortino Ratio

The Sortino ratio is an alternative to the Sharpe ratio, as it isolates the effects volatility has on investments. This ratio is used to determine...

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EBITA and how It works

Category: Financial

EBITA and how It works

EBITA, short for Earnings before Interest Taxes and Amortization, is a formula that calculates the operational profitability of a company by including the costs of...

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Times interest Earned Ratio

Category: Financial

Times interest Earned Ratio

Also called the interest coverage ration sometimes, the times interest earned ratio is a coverage ratio. It can calculate the proportionate amount of earnings that...

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Total Visits

Category: Financial

Understanding EBIT

Shortened from Earnings before Interest and Taxes, and also referred to as the operating income, is an equation that measures the operating profits of a...

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Treynor Ratio

Category: Financial

Treynor Ratio

Also known as the reward to volatility ratio sometimes, the Treynor ratio is basically a risk assessment formula. It can estimate the volatility in the...

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DuPont Analysis – The Basics

Category: Financial

DuPont Analysis – The Basics

While the name may sound very fancy, this is actually a crucial method to understand the finance point of a company. Also referred to as...

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Dividend Yield

Category: Financial

Dividend Yield

Every fundamental analysis tool works differently for every investor – so in order to understand the stocks, you need to know how to calculate them...

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WACC

Category: Financial

WACC

Were you looking for information about the Weighted Average Cost of Capital? In that case, you’re just in the perfect place! WACC is a financial...

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Dividend Payout Ratio

Category: Financial

Dividend Payout Ratio

The DPR (Dividend Payout Ratio) is the dividend amount that has been given to shareholders as payment – and which is in direct relation with...

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Working Capital Ratio

Category: Financial

Working Capital Ratio

If you’re here, it’s because you are most likely curious about what the working capital ratio is and how it works. Also called the current...

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First Year Voluntary Termination Rate

Category: Financial

Z-Score

Wondering what a Z-Score is? Well, it’s basically an estimation of the number of standard deviations a point is away from the mean of its...

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Defensive Interval Ratio (DIR)

Category: Financial

Defensive Interval Ratio (DIR)

The defensive interval ratio is considered to be one of the most valuable liquidity ratios. Expressly, it focuses on calculating how many days it takes...

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What Is the Debt to Income Ratio?

Category: Financial

What Is the Debt to Income Ratio?

The debt to income ratio is considered to be a valuable number – some people even say that it is as important as one’s credit...

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Total Visits

Category: Financial

The Debt to equity ratio: what you should know

The debt to equity ratio is another important liquidity ratio. Fundamentally, it compares a firm’s total debt in relation to its total equity. The debt...

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The debt to capital ratio

Category: Financial

The debt to capital ratio

An important liquidity ratio, the debt to capital ratio measures a company’s strategy when it comes to using its financial leverage. More specifically, it compares...

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Defining the debt to asset ratio

Category: Financial

Defining the debt to asset ratio

To begin with, the debt to asset ratio could be defined as a leverage ratio, calculating the total amount of assets financed by creditors, as...

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The Debt Service Coverage Ratio (DSCR)

Category: Financial

The Debt Service Coverage Ratio (DSCR)

The debt service coverage ratio is another financial ratio that provides insight into a company’s financial situation. Expressly, it determines a company’s capability of covering...

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Debt Ratio

Category: Financial

Debt Ratio

Today, we will concentrate our attention on the debt ratio – a solvency ratio whose purpose is to measure a company’s total liabilities as a...

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Category: Financial

Inventory Turnover Ratio

Now we’ll look into the efficiency ratio that is the inventory turnover ratio. This ratio is used to determine whether the inventory of a business...

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Days Sales in Inventory

Category: Financial

Days Sales in Inventory

How many days will it take for your company to sell its entire inventory? Well, if you have no idea, then you can calculate the...

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Category: Financial

Days Payable Outstanding

This financial ratio compares the cost of sales, accounts payable, and the number of bills that remain unpaid in order to calculate the average time...

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First Year Voluntary Termination Rate

Category: Financial

Current Ratio

The current ratio refers to a company’s ability to use its current assets in order to pay off its short-term liabilities. This ratio is labeled...

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Asset Turnover Ratio

Category: Financial

Cost of Goods Sold

Also abbreviated as COGS, the cost of goods sold measures the direct costs that were sustained during the production of products that were sold during...

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Web Traffic Concentration

Category: Financial

Correlation Coefficient

The statistical measure of the association or dependence of two numbers is known as the correlation coefficient. Also known as Pearson correlation, it can appear...

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Total Visits

Category: Financial

Contribution Margin

The difference between a company’s total sales revenue and variable costs is also known as a contribution margin. Sometimes used as a ratio, it shows...

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Cycle Time to Process Payroll

Category: Financial

Cash Ratio

A company’s ability to pay off its current obligations with cash equivalents or cash only is determined with the help of the cash ratio, also...

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Successful to unsuccessful tenders

Category: Financial

Cash Flow Coverage Ratio

Naturally, a company must be able to pay off its obligations with the operating cash flows it has. This ability is measured with the help...

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Category: Financial

Cash Earnings/ Share

A company’s financial performance can be measured by using a certain profitability ratio, namely, Cash EPS, which is more commonly known as Cash Earnings per...

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Category: Financial

The Cash Conversion Cycle

The odds are that you’ve stumbled across the term cash conversion cycle, and you want to comprehend its individual specifications. This is what we’re going...

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The Capitalization Ratio

Category: Financial

The Capitalization Ratio

The capitalization ratio, also referred to as the cap ratio, represents a financial ratio that measures a firm’s solvency. It does that by calculating the...

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CAGR

Category: Financial

CAGR

The percentage of an investment, in terms of it increasing and decreasing year over year, is determined with the financial investment calculation that’s known as...

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First Year Voluntary Termination Rate

Category: Financial

Break-Even Point Analysis

To start with, the break-even point analysis represents a measurement system that determines the margin of safety. It does this by comparing the revenues or...

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Average Payment Period – The Specifics

Category: Financial

Average Payment Period – The Specifics

Also known as an important solvency ratio, the average payment period (APP) assesses how much time it takes for a business to pay its vendors,...

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Average Inventory Ratio

Category: Financial

Average Inventory Ratio

The purpose of this article is to explain the characteristics of the average inventory ratio, how to calculate the ratio, and why it is utilized....

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Total Visits

Category: Financial

Asset Turnover Ratio: The Basics

The asset turnover ratio is a widely used efficiency ratio that analyzes a company’s capability of generating sales. It accomplishes this by comparing the average...

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Accumulated Depreciation Ratio Explained

Category: Financial

Accumulated Depreciation Ratio Explained

In today’s post, we will focus on explaining the specifics of the accumulated depreciation ratio. We’re talking about a fixed assets ratio that calculates the...

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