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Stockholders Equity Thoroughly Explained

When evaluating any company’s financial condition, accounting for the Stockholders’ Equity, among other things, is a good way of understanding just how well the company is doing in the long run. It’ll help you understand if the company is well at the... Read more

Calculating the Asset Turnover Ratio

There are various ratios used by financial adepts to determine how well the company is doing in a particular field compared to some fundamental factor. The asset turnover ratio, for instance, estimates how effectively the company uses its assets.Whil... Read more

A Guide on How to Increase Liquidity Ratio

What is the liquidity ratio?The attractiveness of an enterprise for customers and creditors is traditionally assessed through the analysis of financial statements. Analysis of liquidity indicators is necessary both for the internal needs of enterpris... Read more

Statement of Comprehensive Income

OverviewThere are numerous financial reports that a company can prepare. Each presents different financial information and serves a different purpose. Financial analysts, for instance, rely on financial reporting data to measure performance and predi... Read more

Financial Leverage Explained with Example

DefinitionFinancial leverage is the ratio of a company's debt to equity. It characterizes the degree of risk and stability of the company. The less financial leverage, the more stable the position. On the other hand, borrowed capital allows you to in... Read more

A Comparison of Direct vs Indirect Cash Flow

OverviewThe main source of funds for the enterprise is the proceeds from the sale of products/services and profits. The absolute value of these indicators, as well as their dynamics for the reporting period, characterize the efficiency of the enterpr... Read more