Common Business Accounting Calculations

December 1, 2024 | 0 views

No matter the type of business or industry, being able to analyze and deduce patterns is essential to discovering a business’ financial health. Here are four commonly used calculations to help internal and external stakeholders determine an organization's ability to...

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Cash Conversion Cycle (CCC) Defined

November 1, 2024 | 0 views

This metric, which is also referred to as the cash cycle or the net operating cycle, looks at the time a business takes to recover its investment in inventory to eventually sell. The process starts from selling its goods, collecting...

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How to Measure the Quality of Accounts Receivable

October 1, 2024 | 0 views

Analyzing a company's Accounts Receivables is an effective way to measure its current cash flows and the likelihood of maintaining healthy cash flows. According to the U.S. Chamber of Commerce's Small Business Index (Third Quarter 2024), 68 percent of small...

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Looking at the Expanded Accounting Equation

September 1, 2024 | 0 views

Whether it’s a private equity transaction or an institutional or retail investor, analyzing a company’s financial statements is an important part of fundamental analysis. One important but basic way to analyze whether a company is worth investing in is through...

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Accounting Considerations for Capital Expenditures and Operating Expenses

August 1, 2024 | 0 views

When it comes to running a business, there are a lot of expenses incurred during operations. As of January 2024, New York University’s Stern School of Business had recorded nearly $1.2 trillion in capital expenditures by U.S. sectors. Considering this,...

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