And importantly, it provides significant ratios analysis that tells you how the company is doing. If you have a bookkeeper and accountant, they will be able to provide you with a detailed report on each of these. If you don’t, it may help you to understand what the financials in the headings below mean—and why […]
If you have outstanding receivables, reminders can also help to collect payments from customers who are overdue. It’s important to think about your AR process as a whole and identify weak points to be improved. If you have a low ratio, consider ways you can improve your accounts receivable processes and efficiency. This could include […]
By achieving economies of scale, a business can spread out fixed costs over a larger number of products or services and decrease variable costs in the process, resulting in significant cost advantages. Fixed costs and variable costs are two main types of costs a business can incur when producing goods and services. Variable costs are […]
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If you are considering a position in business and want to excel to the top of the career ladder, then these two positions are your endpoint. Because their perspectives are different, presidents and CEOs operate with different goals in mind. For example, a CEO may measure the success of a company based on the long-term […]
But when an employee doesn’t show up for work, that often means someone else has to work overtime to cover their shift, which leads to an increase in direct labor cost. The best time to start is right now, and the best place to start is https://www.quick-bookkeeping.net/learn-the-basics-of-closing-your-books/ with your employee management software. Next, gather overtime […]
Therefore, the risk of a callable bond is greater than that of a non-callable bond. A senior note is a type of bond that takes precedence over other bonds and debts if the company declares bankruptcy. A floating-rate note is a bond that pays investors a variable interest rate, meaning the rate can change as […]
Therefore, the risk of a callable bond is greater than that of a non-callable bond. A senior note is a type of bond that takes precedence over other bonds and debts if the company declares bankruptcy. A floating-rate note is a bond that pays investors a variable interest rate, meaning the rate can change as […]
The difference between the purchase price and par value is the investor’s interest earned on the bond. To calculate the value of a zero-coupon bond, we only need to find the present value of the face value. Carrying over from the example above, the value of a zero-coupon bond with a face value of $1,000, […]
The coupon rate can be calculated by dividing the annual coupon payment by the bond’s par value. Bond yields are quoted as a bond equivalent yield, which adjusts for the bond coupon paid in two semi-annual payments. In the previous example, the bonds’ cash flows were annual, so the YTM is equal to the BEY. If […]
