If anyone is getting into business without having no clue what the ROI is, they are in some serious trouble. When one owns a company, it is absolutely vital for that person to know if the investments he/she has made led to gains or to losses. This is the most basic definition of ROI: it… Read more
If you’ve worked in a company for years on end, you probably realized that people want better salaries not on account of them being materialistic, but because the costs of living seem to be on an endless upward trend. As a business owner, raising salaries might be out of the question, simply because you can’t… Read more
As you probably already know, simply hiring someone may not be enough to boost the performance of a certain department of your company. In this case, you definitely have to rely on training – however, training does not come for free nor can it be performed by some of your company’s employees. If you want… Read more
Companies hate it when their people leave – but they hate it even more when a valuable person with vast experience leaves. According to some studies, if a person that has a salary of 100.000$ leaves, the company loses around 750.000$. It’s a big number, so the loss is mainly 5 times the employee’s salary…. Read more
It’s very rare that an employment at a certain company lasts for a lifetime – mainly because the average person works for about five years within a certain company before they move. Most of the time, they terminate their contract and move to another company. There are, however, two types of terminations that can occur… Read more
How can a company assess that its recruiting process is efficient or not? One of the ways in which you can do that is by utilizing a range of relevant recruiting metrics. When used accordingly, recruiting analytics can outline a range of essential specifications. More specifically, these could indicate whether your external recruiting efforts provide… 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
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 and a specific benchmark index. Basically, r-squared shows what portfolio performance or degree of stock can be attributed to a certain benchmark index. Used especially when comparing models, r-squared is… Read more
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 due – but only with the company’s quick assets. The quick assets are those assets that are being owned by a company and which can be converted into cash in… Read more