How to Analyze Financial Ratios: What is a ROE Ratio and How Does it Help You Invest?

When it comes to investing, understanding the many different ratios that are available is crucial. Financial ratios help investors to analyze the performance of their investments by comparing them with other companies in the same industry.

Understanding the Difference Between Business and Financial Risk Evaluation

Business risk is the risk that the company will not be able to generate enough revenue in order to sustain itself. Financial risk, on the other hand, is related to an individual's financial well-being and includes one's ability to pay bills, mortgage, student loans, credit cards, or other personal debts.

The Credit Rating Framework: Your Guide to Understanding It

A credit rating is an evaluation of your ability to repay your debt. Your credit history, which includes any outstanding debt, provides the basis for this evaluation.

This blog is then compiled by a credit agency that determines what type of interest rate you will be charged when you apply for future loans or lines of credit. A good credit rating can help you get a loan at a better rate and even save you money on your monthly payments because it qualifies you for better rates and terms.

5 Things To Know About the Linkage Between Income Statement and Balance Sheet of Any Company

If you're an investor, manager or business owner, understanding the ratios in a company's income statement and balance sheet should be your number one priority. An income statement is a report that shows revenue and expenses by the financial period of time. In contrast, a balance sheet shows assets, liabilities and equity at a point in time. If you see that these two statements are not in line with each other, it can signal problems. Take a look at five things you should know about the linkage between income statement and balance sheet of any company.

An Introduction to the Accounting Statements of Any Company

Financial statements are a representation of the financial health of a company. They are comprised of three major categories: the income statement, balance sheet, and cash flow statement. The income statement records all transactions for a given time period, which is usually one year, and helps to answer questions about how much money was made or lost during that time span.

9 Principles of Corporate Finance You Need To Know

Are you interested in knowing the basics of corporate finance? Have you always wondered what goes into the day-to-day operations of a company?

Corporate finance is an interesting and complicated topic. With that said, this article will provide a few principles of corporate finance you need to know. This article will describe the difference between debt and equity financing, explain how companies acquire financing, and introduce the idea of shareholder value maximization. If you’re looking for some basics, read on to learn how these principles are applied to a business's management decisions.