Value added refers to the economic value created by a business or organization. It is calculated as the difference between the sales revenue and the cost of goods sold (COGS).…
Vertical analysis, also known as common-size analysis, is a financial technique used to assess the relative importance of various line items within a financial statement. By expressing each line item…
Turnover, in the context of finance and business, refers to the rate at which a company’s assets or inventory are replaced. It measures the efficiency with which a company manages…
Tax brackets are a system used by governments to determine the amount of income tax owed by individuals or businesses. Each bracket represents a specific range of taxable income, and…
A solvency ratio is a financial metric that measures a company’s ability to meet its long-term obligations. It is calculated by dividing the company’s total assets by its total liabilities.…
A sinking fund is a special account established to accumulate funds for the repayment of debt. It is typically used to retire long-term bonds or other forms of debt that…
Seed capital refers to the initial funding provided to a newly established business or startup company. It serves as the foundation for a company’s operations and helps it overcome the…
In the business, raw materials refer to the unprocessed or minimally processed natural resources used as primary inputs for the production of goods and services. These resources are essential for…
In the business, a sector is a distinct segment of the economy that comprises businesses and industries with similar characteristics and economic activities. These sectors are often classified based on…
Retained earnings are the portion of a company’s net income that is reinvested back into the business rather than distributed to shareholders as dividends. This accumulated surplus represents the company’s…