Why Gross Margin is an important metric?
We are looking at the word gross margin. Gross margin is a company’s total revenue minus by the COGS (cost of goods sold), divide by the...
Is your business solvent?
As a business owner, one of your greatest concerns that you face is whether or not your business is going to survive. Many businesses...
Word of the Week: Acid Test Ratio
Liquidity! What is it? It is the ability of current assets to meet current liability when due. How does a business owner test they...
Accounting word of the Week: Target Income Sales
Target Income Sales
Accounting word of the Week: Receivable Turnover
Many banks will compute financial ratios to evaluate the liquidity of a company’s account receivables.