EBITA Meaning Demystified: Understanding the Financial Metric
EBITA or Earning before Interest tax and amortisation is often considered the surrogate for a companys earnings. Yes, you heard it right!
Category Investment Banking Jobs & Interviews
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What is the Bargaining Power of Suppliers? Super Simplified.
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…
What is the meaning and definition of Cash Equivalents?
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 the meaning of Six Figure Salary?
What is a Six-Figure Salary? In the corporate world, there is a thing known as the six-figure salary. A six-figure salary means getting a salary that is at least $100,000. Individuals who earn less than that, but are earning at…
Utility Expenses in Financial Accounting
Utility expenses, as the word suggests, are expenses related to basic amenities associated with running an establishment or a home. For e.g., electricity, fuel, phone or water. Now you may think that’s correct, but how do we categorize them in…
what is the formula of Empirical Probability?
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…
What are Non-monetary Assets and Liabilities in accounting?
Non-monetary assets are assets that have value but cannot be converted into cash or money. What are Non-Monetary Assets? Non-monetary assets are the assets a company has whose exact monetary value cannot be determined precisely. The value of these assets…
Types of mergers and acquisitions with examples
One recent example of types of mergers is, between Brookfield Asset Management and Oaktree Capital Group. The deal, announced in September 2021, would combine two of the world’s largest alternative asset managers with a combined $475 billion in assets under…
What is Contribution Analysis ?
Contribution analysis is a method used to determine the profitability of different products, services, or business units within a company. The goal of contribution analysis is to identify which products or services are generating the most profit and which are…
What is the Cash Ratio ? Formula,Examples & Case Study
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…
The Basics of Implied Contract in Law: A Quick Read
Have you ever wondered, when you paid someone for a service but there was no actual written document to prove that it exists. Now, that is called as an implied contract, irrespective of the written legal document, which is legally…
What is trade or suppliers credit in accounting?
What is Trade Credit? Trade credit, in commercial finance, is an agreement between parties in which the customer can purchase goods or services without paying cash upfront. The customer will pay the supplier at a date scheduled in the future.…
