You’ll want to consider the current ratio if you’re investing in a company. When a company’s current ratio is relatively low, it’s a sign that the company may not be able to pay off its short-term debt when it comes due, which could hurt its credit ratings or even lead to ban...
he sales value and collect the tax payable from the purchasers in addition to the pay ment on goods and services. If the sales prices of the goods and services are tax inclusive prices,the taxpayers have to work out the tax exclusive sales value by using the following formula: Tax exclsive...
Its working capital might include the cash it has in its business bank account, the payments it expects to receive from customers who have placed orders, and the value of the raw materials (beads, wires, etc.) and finished jewelry it has in stock. Meanwhile, its current liabilities would ...
You need to be aware of your industry’s inventory turnover ratio norm, so you can see where your business fits in. Investors also use this ratio as part of their assessment of potential investments. But, as you can see, this is only useful when comparing companies in the same industry....
Unlikeworking capital, which evaluates the overall liquidity of a business by subtracting current liabilities from its current assets, WCR zooms in on a business’s ability to meet immediate obligations and maintain day-to-day activities. Businesses need to closely monitor their WCR to: ...
As highlighted earlier, Amazon is a trusted brand that you can work with. Most of thedropshippers that want to start in the businesswork with Amazon. The reason is that having Amazon’s name with your brand would allow attracting more customers. ...
Research is ongoing as to theideal ratio of sitting to standingduring a workday. Using advanced ergonomic and health risk calculations,Jack Callaghan, a professor in Waterloo’s Department of Kinesiology, has found that the ideal sit-stand ratio lies somewhere between 1:1 and 1:3 – a vast ...
out of the business inventories report is the inventory-to-sales ratio, which is an indication of the relative size of inventories to the pace of sales. For example, a ratio of 1.5 would mean that there is enough merchandise in the system to cover one and a half months of aggregate ...
In the United States, theFederal Reserve, known as the Fed, is the policy-making body that regulates the money supply. Its economists track the money supply over time to determine whether too much money is flowing, which can lead to inflation, or too little money is flowing, which can cau...
forex trading is also used forhedgingpurposes. Individuals and businesses use forex trading to protect themselves from unfavorable currency movements. For example, a company doing business in another country might use forex trading to insure against potential losses caused by fluctuations in the exchange...