Profitability Ratios Analysis: Example | Types | Explanation | Importance

Profitability Ratios are the group of Financial Ratios that use for assessing and analyzing the entity’s profitability through various ratios. The areas that these ratios focus on are sales performance, costs management, assets efficiency, and sometimes cash flow management. The high or increase of these ratios implicitly means the entity financial performing well. The high …

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Depreciation Expenses: Definition, Methods, and Examples

Definition: Depreciation expenses are the expenses charged to fixed assets based on the portion assets are consumed during the accounting period based on the company’s fixed asset policy. The expenses that charge during the period (monthly or yearly) are recorded in the company’s income statement in that period. The accumulation of it is recorded in …

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How to Calculate Earnings Per Share? (Definition, Using, Formula)

Definition: Earnings Per Share is the proportion of profits available to shareholders over the average number of shares outstanding. It is s calculated by dividing the net profit or loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding. Earnings Per Share (EPS) is widely used as a measurement of the company’s performance and …

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Financial Controller: Overview, Qualification, Role, and Responsibilities

Overview: Financial Controller is generally referred to as the high-level executive person who oversees the Finance Department and other senior executives, including Finance Director or sometimes CFO, Finance Manager, and other executives. There are many roles and responsibilities that the Financial Controller has, but here is the main important task they normally perform: Oversee financial …

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Financial Management: Overview and Role and Responsibilities

Financial management deals with the ways in which an organization can raise funds for the various projects, allocation of those funds in the most productive and efficient way, how to exercise control over those funds, and how to distribute the returns of those funds to the various stakeholders. It generally deals with planning, controlling, organizing, …

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Quick Ratio: (Definition, Formula, Example, and More)

Definition: Quick Ratio is one of the Liquidity Ratios used to measure the company’s liquidity position, project, investment center, or profit center. The special characteristic of this ratio from the other Liquidity Ratios is that Quick Ratio taking account only cash and cash equivalent items for calculation and interpretation. It disregards other items which might not quickly convert …

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