The debt-to-equity ratio can be computed with the following formula, using figures from your balance sheet: |
This ratio measures the percentage of a business's assets that are financed with debt, and can be calculated using the following formula: |
Coverage of fixed charges is also sometimes called "times fixed charges earned." |
Interest coverage is also sometimes known as the "times interest earned ratio." It is very similar to the "times fixed charges earned" ratio but focuses more narrowly on the interest portion of your ... |
Your financial statements and ratio analysis may not always give a true picture of the condition of your business and how you stack up against other ... |
Inflation has its biggest impact on the reported profits of businesses with sizable inventories. Consider the following example: |
The second major cause of distortions in the picture presented by financial statements and ratio analysis of the ... |
To have a strong and successful business, you need to have a clear understanding of the financial impact that your most basic business decisions may have. |
Before you can use cost/volume/profit analysis to help you evaluate your business's operations, you need to get a handle on the fixed costs of your business, as compared to your variable costs. |
One of the important, yet relatively simple, tools afforded by cost/volume/profit analysis is known as contribution margin analysis. Your company's contribution margin is simply the percentage of ... |
