CAGR

| Category: Financial.

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 CAGR. This stands for Compound Annual Growth Rate. It can be compared with the annual average rate of return for a certain investment made by your company over a set… Read more

Break-Even Point Analysis

| Category: Financial.

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 units that have to be sold to cover both fixed and variable costs linked with making the sales. Specifically, this ratio is a means of calculating the potential profitability of… Read more

Average Payment Period – The Specifics

| Category: Financial.

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, in the case of purchases made on credit. Many times, when a business makes an important purchase, credit arrangements are made beforehand. These arrangements might give the buyer a specific… Read more

Average Inventory Ratio

| Category: Financial.

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. For one thing, the average inventory ratio is known as a usage ratio that specifically calculates how much time it takes a firm to sell its inventory. Expressly, it points… Read more

Asset Turnover Ratio: The Basics

| Category: Financial.

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 total assets to the net sales of a company. Expressly, this ratio displays how efficiently a company can utilize this in an attempt to generate sales. To be more precise,… Read more

Accumulated Depreciation Ratio Explained

| Category: Financial.

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 value, age, and usefulness of the fixed assets present on a firm’s balance sheet. In essence, these are compared in relation to the total amount of depreciation taken on by… Read more

How does Passion Drive Product Development?

| Category: Passion.

Passion is arguably the most important intangible element that drives an entrepreneur, enabling them to remain focused on product development during peaks and troughs. If you aren’t passionate about the product you want to introduce in the market, the product is bound to fail even before it is introduced. And if you lose passion at… Read more

How Smart People Using Good Processes Create Great Products

| Category: People.

When you start your own business, you need to refine your idea and write a business plan in order to create something grand and great; a handful of good, smaller pieces have to work together to get to the best possible final outcome. In business, the road to entrepreneurial success can be long. It takes… Read more