According to a recent survey conducted by CCTV, a high proportion of 84.7 percent of people admitted that technology had great influence on their life and they couldn’t live without it. There is no denying that technology enjoys...
1. High Customer Acquisition Costs When the cost of acquiring new customers is too high, you might end up with a low LTV to CAC ratio. This is often due to inefficient marketing spend, poorly targeted ads, or a lack of focus on the most profitable customer segments. For example, if you...
directly influences the amount of income you receive from your premium, the payment option you choose also directly affects the non-taxable/taxable ratio of each monthly payment. This idea is also known as the "exclusion ratio" concept. I'll explain what an exclusion ratio is in more detail ...
Consider working on improving your credit score before applying for a mortgage. 300 to 574: Your credit score is poor and needs improvement, but that’s OK. As your credit stands right now, you’d be considered a high-risk borrower. Even if you’re approved for a mortgage, you would ...
This can also be expressed as a revenue to cost ratio of 4:1. This simple formula can be helpful to get a quick high-level overview of marketing returns. However, if you want to identify specific marketing activities that drive more results, consider tracking ROI at campaign level. In ...
Your debt-to-income ratio is the percentage of your monthly income that goes toward your monthly debt payments. Lenders use this ratio to assess your ability to manage your debt and make timely payments.
Thedebt-to-equity (D/E) ratiois a metric that provides insight into a company's use of debt. In general, a company with a high D/E ratio is considered a higher risk to lenders and investors because it suggests that the company is financing a significant amount of its...
Higher Than 50%:A gearing ratio that falls in this range is typically considered highly levered or geared. As a result, the company would be at greaterfinancial risk, because during times of lower profits and higher interest rates, the company would be more susceptible to loan default and ban...
company's assets are funded by debt, which means the company has more liabilities than assets. A high ratio indicates that a company may be at risk of default on its loans if interest rates suddenly rise. A ratio below 1 means that a greater portion of a company's assets is funded by...
While thedebt-to-equity ratiois a better measure of opportunity cost than the basic debt ratio, one principle still holds true: There is somerisk associated with having too little debt. This is becausedebt financing is usually cheaperform thanequity financing. The latter is how corporations usual...