Tag: cash flow

Opportunity Cost Definition

See Also: The Future of the Accounting Workforce Future Value Cost Driver Certified Public Accountant (CPA) Auditor Opportunity Cost Definition Revenue that has been forfeited for an alternative use of time or facilities. Often times these types of decisions are made because a company or person forgoes an immediate cash stream for hopefully a larger

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Operating Capital Definition

Operating Capital Definition The operating capital definition is the cash used for daily operations in a company. As a result, it is essential to the survival of each and every business. Whether small or large, across industries, and under any other conditions that a business faces, lack of cash is one of the main reasons why

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Long Term Debt to Total Asset Ratio Analysis

See Also: Long Term Debt to Total Asset Example Financial Ratios Debt to Equity Ratio Debt Service Coverage Ratio (DSCR) Operating Cycle Analysis Standard Chart of Accounts Equity Multiplier Long Term Debt to Total Asset Ratio Analysis Definition The Long Term Debt to total asset ratio analysis defined, at the simplest form, an indication of

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Labor Costs

See Also: Absorption vs Variable Costing Agency Costs Operating Capital Replacement Costs Labor Costs Definition The labor costs definition is the total cost of all labor used in a business. It is one of the most substantial operating costs. These are particularly important in any business which experience heavy human resource labor costs: construction, manufacturing,

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Key Performance Indicators (KPI’s)

See Also: Flash Reports Normalized Earnings Continuous Accounting: The New Age of Accounting Collection Effectiveness Index Key Performance Indicators (KPIs) Definition Key Performance Indicators (KPIs) are defined as the key drivers of economic activity for a company In essence, KPIs measure the productivity of an organization. By performing a key drivers analysis of the most

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Internal Rate of Return Method

See also: Internal Rate Of Return Example NPV versus IRR Owner’s Equity Net Present Value (NPV) vs Payback Method Cost of Capital Valuation Methods Internal Rate of Return Method Definition The Internal Rate of Return method is the process of applying a discount rate that results in the present value of future net cash flows

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Free Cash Flow Analysis

See Also: Cash Flow Projections Discounted Cash Flow Analysis Cash Cycle Steps to Track Money In and Out of a Company Free Cash Flow Analysis Definition Free cash flow analysis is the amount of cash that a company can put aside after it has paid all of its expenses at the end of an accounting

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Cash Flow Projections

See Also: Cash Flow After Tax 13 Week Cash Flow Report How to Produce Realistic Sales Projections Optimistic Projections Why Most Sales Projections Fail Cash Flow Projections Financial statements are the basic building block for understanding how a business is doing. They provide management a way to assess the results and consequences of past decisions.

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External Sources of Cash

See Also: Angel Investor Categories of Banks Commercial Paper Common Stock Convertible Debt Instrument Venture Capital External Sources of Cash In another article, I told you about Sue and generating cash from sources within her business. I will not detail her entire story at this time, but will tell you that we were successful in

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Equity Interest Definition

See Also: Brand Equity Return on Common Equity (ROCE) Return on Equity Analysis Carried Interests Equity Interest Definition Equity interest, defined as the amount of equity a single person holds in a business, is a common concept to the small business world. For example, if an angel investor receives 25% ownership of a company, the

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EBITDA Definition

See Also: EBITDA Definition EBITDA Formula Calculate EBITDA Discounted Cash Flow Analysis Cost of Capital Funding Capital Asset Pricing Model Discount Rates NPV Adjusted EBITDA EBITDA Definition | What is EBITDA? The EBITDA definition is earnings before interest, taxes, depreciation, and amortization. It measures a company’s financial performance by computing earnings from core business operations,

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Debt Service Coverage Ratio

See also: Operating Income (EBIT) Financial Ratios EBITDA Definition Loan Agreement Time Interest Earned Ratio Analysis Net Income Benchmarking Fixed Charge Coverage Ratio Times Interest Earned Ratio Free Cash Flow Debt Service Coverage Ratio The debt service coverage ratio (DSCR) is a financial ratio that measures the company’s ability to pay their debts. In broad terms the

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