Besides the financial performance, profitability, net assets, capital, etc., the net worth calculation is also an important consideration for any business entity. The purpose of some financial metrics is to report different aspects of a company’s performance. For...
The ownership structure of companies differs from other businesses. Companies have shares that allow holders to become part-owner of the company. Usually, more shares come with higher control over the company’s operations. A shareholder that owns 50% or more of...
Revenues define the income from a company’s operations during an accounting period. These revenues may arise from the sale of either goods or services. Similarly, they may come from both cash and credit sales. Regardless of their source, revenues play a significant...
Companies that exist to profit depend on revenues. While expenses also play a part in those profits, the more sales a company makes, the more it profits. Therefore, most companies focus on increasing their revenues. These revenues may generate from products or...
The primary objective of any business entity is to sell its products and services to earn revenue against them. Any business or individual adopts certain activities to create a stream of money or funds to meet their needs and save the excess money for the future....
Liquidity plays a crucial role in a company’s success. It refers to how easily a company can convert its assets into cash. There are several factors that contribute to liquidity. While they may include external influences, these factors are generally internal. One...
