Let's examine how accounts receivable and accounts payable work together to affect cash flow, look at a few examples, and do some simple math.
This metric—which is calculated by dividing dividends per share by earnings per share—tells you how much of a company's earnings are going toward the dividend. A ratio higher than 100% means the company is paying out more to its shareholders than it's earning. In such cases, it may be...
Your loan-to-value ratio (LTV) is another way of expressing how much you still owe on your current mortgage. Here‘s the basic loan-to-value ratio formula: Current loan balance ÷ Current appraised value = LTV Example:You currently have a loan balance of $140,000 (you can find your lo...
Cash-out refinances let you use your home equity to pay for things like home improvements, medical bills, or tuition. Learn about rates and requirements.
Your debt-to-income ratio could make or break your chances of getting a mortgage. Understand how it's calculated and what DTI will improve your odds.
Free cash flow yield gives your company’s shareholders and investors a snapshot of how much cash your business generates relative to its value.
7 Tips to Improve Your Accounts Receivable Turnover Ratio One of the top priorities of business owners should be to keep an eye on their accounts receivable turnover. Making sales and excellent customer service is important but a business can’t run on a lowcash flow. Collecting your receivabl...
This ratio is commonly used in the United States to normalize various accounting treatments for exploration expenses: the full cost method vs. the successful efforts method. Exploration costs are typically found in financial statements as exploration, abandonment, anddry holecosts. Other non-cash expen...
What Is Free Cash Flow (FCF)? Free cash flow (FCF) is the amount of cash that a company generates after accounting for spending needed to support its operations and maintain itscapital assets. Investors and analysts rely on it as one measurement of a company's profitability. ...
The debt-to-equity ratio is a type ofgearing ratio. Key Takeaways The debt-to-equity (D/E) ratio compares a company’s total liabilities with its shareholder equity and can be used to assess the extent of its reliance on debt.