Working Capital Cycle (WCC) The length of time it takes for a company’s total net working capital (current assets minus current liabilities) to be converted into cash is referred…
Advantages and Disadvantages of Working Capital Turnover (WCT) Working capital turnover is a ratio that evaluates the extent of net deals to working capital, and it estimates how effectively a business transforms its…
Working Capital Turnover (WCT) Working capital turnover (WCT), also known as net sales to working capital, is a ratio that indicates how well a firm uses its working capital…
Accounts Payable Turnover Ratio The accounts payables turnover ratio, also known as the creditor’s turnover ratio, is a short-term liquidity metric that quantifies how quickly a company pays off its…
Accounts Receivable Turnover Ratio The debtor’s turnover ratio, also known as the accounts receivable turnover ratio, is an accounting metric that assesses a company’s ability to offer credit and…
Net Operating Income (NOI) The term “net operating income (NOI)” is widely used in real estate accounting to refer to the methodology for calculating a commercial property’s profitability. The…
Features of Equity Shares Equity share is a main source of finance for any company giving investors rights to vote, share profits, and claim on assets. It gives partial…
Administrative Expenses Administrative expenses are those incurred by a company that are not directly related to a certain activity, such as manufacturing, production, or sales. The charges…
Budget Variance The difference between the budgeted or baseline amount of spending or revenue and the actual amount is referred to as a budget variance. The term…
One-Time Charge A one-time charge, also known as a non-recurring item, is a line item that appears on a company’s financial statements on an irregular basis. At…
Horizontal Acquisition Horizontal acquisitions, also known as horizontal mergers or horizontal integrations, occur when one business buys another in the same industry and at the same stage…
Variance Analysis The quantitative assessment of the discrepancy between actual and planned behavior is known as variance analysis. The total of all deviations depicts the overall over-performance…