-
Credit Ratios Introduction
This post is the last in a series covering financial ratios. In previous posts, we discussed ratios which measure profitability and working capital efficiency. In […]
-
Activity Ratios Introduction
We refer to the ratios covered in this post as activity ratios. These ratios measure the efficiency with which the company is managing its operating […]
-
Understanding Return on Common Equity
Previously we introduced a profitability ratio known as return on invested capital (ROIC). This ratio measures the amount of operating profit per dollar of total […]
-
The Hurdle Rate – Understanding the Cost of Capital
In a previous post, we discussed a metric called return on invested capital (ROIC) and its variant, return on incremental invested capital (ROIIC). ROIC measures […]
-
Managing Your Business for Profitability – Understanding Return on Invested Capital
One mistake I see many small business owners make is to focus on the “bottom line”, i.e., the profits of the business, while ignoring the […]
-
Financial Management: A Brief Guide for Small Businesses
In the investment world we constantly hear about the importance of “thinking like an owner,” particularly in reference to the short holding periods of most […]
-
Finance Fundamentals (4): Basic Accounting Concepts
Introduction Accounting is a function in which business transactions are recorded and presented in the form of financial statements. The three main financial statements are […]
-
Finance Fundamentals (3): Understanding Business Structures
Introduction When an individual or group of individuals decides to start a business, they must decide on what type of organization they will do business […]
-
Finance Fundamentals (2): Understanding the Discount Rate, Net Present Value, and Internal Rate of Return
Introduction In the previous post, we covered the time value of money (TVM) concept. In this post, we will look at how the TVM concept […]
-
Finance Fundamentals (1): Understanding the Time Value of Money
Introduction All investment decisions involve trading a current sum of money for an expected future sum. The time value of money (TVM) is a core […]
NEW: Lectures on a variety of financial management, business strategy, and economic subjects for business owners, aspiring entrepreneurs, and investors.
