What's it: The solvency ratio is a financial ratio to measure a company's ability to meet its long-term obligations. To calculate it, we divide
Finance
EBIT Margin: Calculation and Interpretation
What's it: EBIT margin is a profitability ratio to measure how efficiently a company converts its revenue into profit before paying
NOPAT Margin: Formula, Calculation, and Interpretation
What's it: NOPAT margin is a profitability ratio to measure how efficiently a company generates profit from its core business after
Return on Assets (ROA): Calculation and Interpretation
What's it: Return on assets (ROA) is a profitability ratio to measure how well a company uses its assets to generate profits. This
EBIAT Margin: Formula, Calculation, and Interpretation
What's it: EBIAT margin is a profitability ratio to measure how efficiently a company generates profit from all its activities before
Advertisement
Return on Common Equity (ROCE): Calculation and Interpretation
What's it: Return on common equity (ROCE) is a profitability ratio for measuring the return to common stockholders on their invested
Operating ROA: Formula, Calculation, and Interpretation
What's it: Operating ROA is a profitability ratio to measure how well a company is using its assets to generate profits from its core
Cost of goods manufactured: Meaning, Components, How to Calculate
What's it: Cost of goods manufactured refers to the collection of production cost plus the change in work-in-process inventory. These production
Commodity Index: Meaning, Why It Matters, Examples, Affecting Factors
What's it: A commodity index tracks the price performance of a selected basket of commodities. Index issuers assign weights to selected
Venture Capitalist: Meaning, How it Works
What's it: A venture capitalist is a professional investor who invests in a new company, startup, or young company, in exchange for ownership.
Advertisement
Going Private: Meaning, Reasons, Methods, Benefits
What's it: Going private is when a company's stock is no longer traded for the public. It is the opposite of going public, i.e., a company lists
Gearing: Meaning, How to Calculate, Pros and Cons
What's: Gearing shows you how much a company depends on debt in its capital structure. It's a term in the UK and the same as leverage for the
Breakeven Point: How to Calculate, Benefits, Pros, Cons
What's it: The breakeven point is the point where revenue equals total costs. At that point, the company's sales level is not high enough to
Company Funding: Purposes, Types of Sources
What’s it: Company funding is an injection of money from funders to companies. Sometimes, we also refer to it as corporate financing. In
Operating Leverage: Why It Matters, How to Calculate it
What's it: Operating leverage shows you the extent to which a company's operating costs are dependent on fixed operating costs. If the company
Advertisement
Sovereign Wealth Funds: Purposes, Source of Funds, Top-10 Lists
What's it: Sovereign wealth funds (SWFs) is a state-owned investment fund. The allocation may be in real assets or in financial assets such as