Financial

This is an investment measurement and is used to calculate an investment’s average return beyond the risk-free rate of volatility per unit. Basically, the Sharpe ratio is used to determine the return of a certain investment, which is also adjusted for the investment’s riskiness. This ratio is very important for investors, as they will have… Read more

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 of repaying its debt, by selling its existing assets. So, thanks to this ratio, investors can determine how many assets are necessary for paying down any existing debt obligations. As… Read more

In today’s post, we will focus our attention on one of the most important and relevant recruiting metrics – namely the average time to find a hire. Business owners, recruiters, and entrepreneurs depend on this data as it points actionable insights. It’s as simple as this: the purpose of these recruiting metrics is to answer… Read more

Judging by the name of this metric, Cost per Hire refers to the amount of money your company spends in order to hire a person. On its own, this metric offers insight only on how much you spend per individual hired – but when paired with the Recruiting Budget metric, you can determine how much… Read more

Each entrepreneur is concerned about the prosperity of the business. And a business’ prosperity is naturally linked with the productivity and preparation level of its employees. This is why it makes sense, in the competitive age in which we live, to invest in training programs. When these training programs are organized and prepared accordingly, it… Read more

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 and keep the company going, but your employees also need to be trained in order to work well. But how can you know if your employees are understanding the company-wide organizational… Read more

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 time. Stating the obvious now, the company assets are used to generate money. But to buy assets, you need money. So, this ration is again, used to show how much… Read more

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 and what goes to pay the shareholders as dividends. It may seem a little complicated, but if you know what the payout ratio is, you’re on the right track. Basically,… Read more

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 be on a personal scale or on a business scale. Both of them have different formulas. To understand better the residual income calculation, this is also named discretionary income. Banks… Read more

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 turn its accounts receivables into cash over a specific timeframe. That is to say, this ratio calculates how many times a firm is likely to collect its average accounts receivable… Read more