wacc

WACC

| Category: Finance KPIs.

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 ratio, and it’s used to estimate a firm’s financing and assets acquiring costs. It does so by comparing the equity structure and debt of the business. So, it basically calculates… Read more

Dividend-Payout-Ratio

Dividend Payout Ratio

| Category: Finance KPIs.

The DPR (Dividend Payout Ratio) is the dividend amount that has been given to shareholders as payment – and which is in direct relation with the net income amount generated by the company in question. Simply put, the dividend payout ratio is the unit measuring the net income percentage – and which will be paid… Read more

working-capital-ratio

Working Capital Ratio

| Category: Finance KPIs.

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 ratio, the working capital ratio is a liquidity ratio, and it’s used to estimate a company’s ability to repay its current liabilities with current assets. Therefore, it’s important as it… Read more

z-score

Z-Score

| Category: Finance KPIs.

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 data set. It’s sometimes called standard score, and overall it means that it measures the standard deviations a data point is below or above the mean population. Its use is… Read more

Defensive-Interval-Ratio

Defensive Interval Ratio (DIR)

| Category: Finance KPIs.

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 for a company to pay for its operating expenses by utilizing its most liquid assets, without reaching external financing resources. Therefore, it is a highly valuable tool that assesses a… Read more

what-is-the-debt-to-income-ratio

What Is the Debt to Income Ratio?

| Category: Finance KPIs.

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 score. As the name already suggests, this is a personal finance instrument that measures your amount of debt in comparison with your monthly income. Hence, it indicates the percentage of… Read more

the-debt-to-equity ratio_ what-you-should-know

The Debt to equity ratio: what you should know

| Category: Finance KPIs.

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 to equity ratio displays the percentage of company financing that is derived from creditors and investors. In other words, if the debt to equity ratio is high, that would mean… Read more

the-debt-to-capital-ratio

The debt to capital ratio

| Category: Finance KPIs.

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 its total obligations in relation to the total capital. That would mean that the ratio assesses the proportion of debt a firm utilizes for financing its operations, in comparison with… Read more

Defining-the-Debt-to-Asset-Ratio

Defining the debt to asset ratio

| Category: Finance KPIs.

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 opposed to investors. That is to say, it indicates the percentage of assets that is funded by borrowing, in relation to the percentage of resources that are specifically funded by… Read more

debt_service_coverage_ratio

The Debt Service Coverage Ratio (DSCR)

| Category: Finance KPIs.

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 its debt by comparing its debt obligations in relation to its net operating income. Therefore, it assesses the company’s available cash, comparing it with its current principle, cash and sinking… Read more

Debt Ratio

Debt Ratio

| Category: Finance KPIs.

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 given percentage of its total number of assets. In theory, the debt ratio clearly displays a firm’s financial capability of paying debt with its assets. Therefore, this points how many… Read more

unit_sales

Unit sales to average market unit sales

| Category: Sales KPIs.

The Unit Sales to Average Market Unit Sales metric is used by businesses to determine and track the total sales share of the industry – the data provided by this metric can help you get your business in a dominant position in the market you currently activate in. However, in order to come up with… Read more