What Is Ebitda Formula? Ebitda Formula: EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, is a financial calculation that measures a company’s profitability before deductions that are often considered irrelevant in the decision-making process. In other words, it’s the net income of a company with certain expenses like amortization, depreciation, taxes, and interest added back into the total. Investors […]
What Is The Cost Of Debt? Cost Of Debt: A company’s cost of debt is the effective interest rate a company pays on its debt obligations, including bonds, mortgages, and any other forms of debt the company may have. Because interest expense is deductible, it’s generally more useful to determine a company’s after-tax cost of […]
What is Product Liability Insurance? Product Liability Insurance: As a business owner, you’re responsible for every product you make and sell. If one of those products is faulty or causes some sort of injury, your business could be held accountable for the consequences that follow. Product liability insurance can help mitigate the losses from these […]
Net Working Capital Formula Working Capital Formula: Net working capital is a liquidity calculation that measures a company’s ability to pay off its current liabilities with current assets. This measurement is important to management, vendors, and general creditors because it shows the firm’s short-term liquidity as well as management’s ability to use its assets efficiently. […]
Motivational Business Quotes Business Quotes: Inspirational quotes and motivational sayings have an amazing ability to change the way we feel about life. This is why I find them so interesting and crucial on our paths to success. So what’s their secret? You see, the way you think and feel about yourself, including your beliefs and […]
What Is The Profit Formula? Profit Formula: While people often use the terms benefit and revenue synonymously, they are quite different concepts in business. Revenue is the money generated through product and service sales. Profit is the amount that remains when you subtract the costs of doing business. In the short-term, creating revenue is a […]
Income Statement Template Income Statement Template: An income statement or profit and loss statement is an essential financial statement where the key-value reported is known as Net Income. The statement summarizes a company’s revenues and business expenses to provide the big picture of the financial performance of a company over time. The income statement is typically used in combination with […]
What Is Asset Turnover Ratio? Asset Turnover Ratio: The asset turnover ratio measures the value of a company’s sales or revenues relative to the value of its assets. The asset turnover ratio can be used as an indicator of the efficiency with which a company is using its assets to generate revenue. The higher the asset turnover ratio, […]
What Are Fringe Benefits? Fringe Benefits: Fringe benefits are additions to compensation that companies give their employees. Some benefits are given universally to all employees of a company while others may be offered only to those at executive levels. Some benefits are awarded to compensate employees for costs related to their work while others are […]
Require Capital One Business Checking? Capital One Business Checking: You’ve probably heard of Capital One’s business suite—Spark for Business—as one of the smallest business-friendly business suites in the industry. From Spark Cards to Capital One Lines of Credit, Spark for Business offers a variety of small business financing solutions. You likely have a general idea of what Capital […]
