Understanding Depreciation Recapture

August 1, 2025 | 0 views

When it comes to businesses and asset depreciation, there are many types available, such as straight-line, units of production, double declining balance, and sum of years digits. While these aren't the only ones, they are available via the IRS code...

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Examining Differences Between Liquidity And Solvency

July 1, 2025 | 0 views

Liquidity looks at how well a company can handle paying wages, inventory, and lending repayments via measuring its cash or quasi-cash levels. Put another way, it looks at the health of a company's cash flow to satisfy short-term financial obligations.It's...

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Understanding the Goodwill to Assets Ratio

June 1, 2025 | 0 views

The goodwill to assets ratio measures how much of a company's total assets come from goodwill – an intangible asset like brand value or customer loyalty – and it plays a role in assessing the company's overall value. It provides...

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Cash Flow Available for Debt Service (CFADS)

May 1, 2025 | 0 views

When it comes to the risk of default, Moody's found that during COVID-19, American businesses had a 7.8 percent chance of defaulting. This is compared to a low of 4 percent in 2021, but lower than the current 9.2 percent...

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Valuation Ratio Calculating the EV / 2P

April 1, 2025 | 0 views

When it comes to analyzing a company’s financials, there are many avenues we can take. One way is through multiples; calculating the EV/2P multiple is the focus of this analysis.This ratio looks at a business' enterprise value against its proven...

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