Understanding Depreciation Recapture

🖨 Print⏱ 3 min readWhen it comes to businesses and asset depreciation, there are many types available, such as straight-line, units of production, double declining balance, and sum of years digits. While these aren’t the only ones, they are available … Continue reading →

🖨 Print⏱ 3 min readLiquidity looks at how well a company can handle paying wages, inventory, and lending repayments via measuring its cash or quasi-cash levels. Put another way, it looks at the health of a company’s cash flow to … Continue reading →

🖨 Print⏱ 4 min readThe goodwill to assets ratio measures how much of a company’s total assets come from goodwill – an intangible asset like brand value or customer loyalty – and it plays a role in assessing the company’s … Continue reading →

🖨 Print⏱ 3 min readWhen it comes to the risk of default, Moody’s found that during COVID-19, American businesses had a 7.8 percent chance of defaulting. This is compared to a low of 4 percent in 2021, but lower than … Continue reading →

🖨 Print⏱ 3 min readWhen it comes to analyzing a company’s financials, there are many avenues we can take. One way is through multiples; calculating the EV/2P multiple is the focus of this analysis. This ratio looks at a business’ … Continue reading →

🖨 Print⏱ 3 min readThe subscription economy, according to Forbes, is expected to reach $1.5 trillion in revenue for businesses. With the potential likely realized this year, it’s vital to understand how it is tracked – and more importantly, how … Continue reading →

🖨 Print⏱ 3 min readReturn on Ad Spend (ROAS) is one way to help advertising and marketing professionals and investors analyze how well promotions do (or don’t) produce sales. It helps advertisers develop data based on their campaigns’ revenue production … Continue reading →

🖨 Print⏱ 4 min readThe CAC Payback Period looks at how a business needs to recover its investment in attracting new customers. It is especially crucial for companies that are in industries with large marketing and sales costs. It’s an … Continue reading →

🖨 Print⏱ 3 min readNo matter the type of business or industry, being able to analyze and deduce patterns is essential to discovering a business’ financial health. Here are four commonly used calculations to help internal and external stakeholders determine … Continue reading →

🖨 Print⏱ 3 min readThis metric, which is also referred to as the cash cycle or the net operating cycle, looks at the time a business takes to recover its investment in inventory to eventually sell. The process starts from … Continue reading →