How to Account for Accretion

Category Archives: General Business News

How to Account for Accretion

🖨 Print⏱ 3 min readWhether it’s an individual investor or a business owner looking to increase their earning power, understanding how accretion works is essential for individual and business investors to make the correct decisions going forward. How Accretion Works … Continue reading →

Posted in Blog, Frank's Corner, General Business News |

Understanding The Q Ratio

🖨 Print⏱ 3 min readWhen it comes to evaluating a business, there are many ways to perform a valuation. One way to do so is to use the Q Ratio. Known as Tobin’s Q Ratio or simply the Q Ratio, … Continue reading →

Posted in Blog, Frank's Corner, General Business News |

Understanding Contribution Margin After Marketing

🖨 Print⏱ 3 min readContribution margin after marketing (CMAM) measures how much money is generated per unit retailed after factoring in a company’s variable costs, along with marketing costs. It’s analogous with contribution margin, however, a business must factor in … Continue reading →

Posted in Blog, Frank's Corner, General Business News |

How to Evaluate Accounts Receivables

🖨 Print⏱ 3 min readAccording to the Federal Reserve Bank of St. Louis, collection agencies saw $16.28 billion in revenue in 2019. While revenues have declined somewhat in recent years, unpaid invoices are still big business. Accounts receivable aging reports … Continue reading →

Posted in Blog, Frank's Corner, General Business News |

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 →

Posted in Blog, Frank's Corner, General Business News |

Examining Differences Between Liquidity And Solvency

🖨 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 →

Posted in Blog, Frank's Corner, General Business News |

Understanding the Goodwill to Assets Ratio

🖨 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 →

Posted in Blog, Frank's Corner, General Business News |

Cash Flow Available for Debt Service (CFADS)

🖨 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 →

Posted in Blog, Frank's Corner, General Business News |

Valuation Ratio Calculating the EV / 2P

🖨 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 →

Posted in Blog, Frank's Corner, General Business News |

Defining Net Revenue Retention (NRR)

🖨 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 →

Posted in Blog, Frank's Corner, General Business News |
 
  • VB&T Certified Public Accountants, PLLC

    57 West 57th Street
    Suite 1406
    New York, NY 10018
    (Columbus Circle).

    Tel: (212) 448-0010
    Email: info@getcpa.com

    For more information click here