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…
What is Empirical Probability? Empirical Probability is also known as experimental probability. Empirical probability refers to a probability that is based on historical data. In simpler words, empirical probability illustrates the likelihood of an event occurring based on historical data.e…
So, cash ratio is like the strongest measure to to check a company’s liquidity position and is calculated by dividing cash & equivalents like liquid investments to the current liabilities of the company. The higher the ratio, the better the…
So, let me give you some examples to make you understand the social audit meaning. One example of a real-life social audit is the Fair Labor Association (FLA) audit of a factory in China that produced clothing for a number…
This is a straighforward explaination of the economics concept called as substitution effect. And if you have been wondering around with the dilema of what is substitution effect then you search ends here. What is Substitution Effect? The substitution effect…
A shutdown point is a level of operation in which the company no longer benefits from continuing its operations and hence decides to shut down temporarily or permanently. The company no longer benefits from continuing production in the short run…
The Laspeyres Price Index is a measure of inflation that compares the cost of a basket of goods and services in a base year to the cost of the same basket in a subsequent year. It is calculated by taking…
Interim dividend meaning is simply dividend payments which company pays either quarterly or semi-annually before the annual general meeting of the company or the annual results. Interim Dividend Meaning Summary Colgate announced that they would be thinking about giving interim…
XIRR Vs CAGR a comprehensive guide In this article I will share some practical examples to explain what is XIRR vs CAGR. The decision to invest is very critical. Albert Einstein once said that compounding is the eighth wonder of…
