Significance of Adequate Working Capital
by Adequate working capital means an amount of working capital sufficient to meet day to day operation …
Sources of Working Capital
In the present day context the sources of finance for working capital may be categorised …
Activity Ratio
An activity ratio is a type of financial metric that indicates how efficiently a company …
Analysis of Profitability, Activity, Liquidity & Solvency Ratio
Ratio analysis is a financial analysis tool that involves the calculation and interpretation of various …
Liquidity Ratio
A firm has assets and liabilities to its name. Some are fixed in nature and …
Long term and Short term Capital
Long term Capital “Long term” refers to the extended period of time that an asset …
Profitability Ratio
The management of a company cannot wait for the year to end to analyze their …
Solvency Ratios
Solvency Ratios also known as leverage ratios determine an entity’s ability to service its debt. So, …
Sources of capital; Owned and borrowed, Trade Credit, Bank credit, Commercial papers etc.
Finance required by the business to establish and run its operations is known as Business …
Accounting rate of return (ARR)
Accounting rate of return (ARR) is also known as average rate of return. ARR is …