Did you know that understanding the profit volume ratio formula (PV ratio) can mean survival or death? pv ratio formula is (Contribution/ Sales ) x 100 expressed in percentage, a Higher PV means lower variable cost due to higher fixed…
Financial management plays a crucial role in ensuring the long-term success of any organization. It involves making strategic decisions to optimize financial resources and achieve specific goals. In this article, we will explore two key long-run objectives of financial management:…
So, let me straight forward give you an example; if you take an education loan for an MBA, the bank gives you one year post your MBA program. Which basically means you’ve got one year to find your job and…
Imagine you were working for a client in a country other than yours. For instance, lets say your client is in the U.S, and you are an Indian citizen. So, you are due to recieve $1000, but suddenly inflation in…
In the realm of business and finance, the concept of liability plays a crucial role in determining the level of risk and responsibility for business owners. Two common forms of liability are unlimited liability and limited liability. Understanding the differences…
What is Public finance meaning Public finance meaning is the management of a country’s revenue, expenditures, and debt load through various government and quasi-government institutions. In simple terms, it is the study of the role of the government in the…
Imagine lending money to a friend. Before you do, you’d want to know if they have enough cash or quick assets to pay you back tomorrow. The same logic applies to companies. Creditors, investors, and analysts want to know whether a company…
Credit sales refer to a sale in which the amount owed for received goods or services will be paid at a later date. What are Credit Sales? Credit sales refer to a sale in which the amount owed for received…
EBITA or Earning before Interest tax and amortisation is often considered the surrogate for a companys earnings. Yes, you heard it right!
Think about a situation where you wanted to calculate how much rent will I have to pay if, let’s say, you were about to leave 3 months before the end of the year. The initiative calculation that follows is nothing…
The bargaining power of suppliers means, the pressure that suppliers can put on buyers by changing their prices, reducing the supply or dropping the quality As you might have noticed, I have explained this using the current inflation problem in…
Cash and cash equivalents, is a line item in the balance sheet of a company signifying either cash in bank or very short term investments. What are Cash Equivalents? Cash & cash Equivalents are investment securities that are made for…
