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
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
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 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
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
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
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
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
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
Trial Accounts refer to those customers that are interested and committed to your product. Of course, being interested and committed does not actually mean customers buying your products or your services. However, a portion of these trial accounts will eventually lead to paying customers. Therefore, you have to keep track of and analyze these trial… Read more
Each new product made by a company will come with its own costs – costs which will leave a hole in your budget until it starts bringing some profit. The more time it takes until those costs are covered, the worse it will be for your company. This is why the time to break even… Read more
As an entrepreneur that is passionate about making your business reach the highest peaks, the term ‘tender’ might already sound very familiar to you. This term refers to the process when businesses make bids and offers on projects for other businesses. This is a major opportunity for new businesses to develop a good marketing strategy… Read more