Operating leverage is a measure of the degree to which a company’s fixed costs are used to generate profits.
Financial leverage refers to the use of borrowed funds or debt to increase the potential return on investment. In other words, it is a strategy that involves using borrowed money to finance an investment, with the aim of increasing the potential profits that can be earned.
Accounts payable management is the process of managing a company’s accounts payable in an efficient and effective manner to ensure that the company’s short-term debts are paid on time and in full while maximizing cash flow and minimizing costs.
Pricing is a process of setting the value that a manufacturer will receive in the exchange of services and goods. If manufacturers set prices too high, they miss out on valuable sales. Set them too low, and they miss out on valuable revenue.
Receivable management refers to the process of managing a company’s accounts receivable in order to ensure that payments are collected on time and the company’s cash flow is optimized.
The cash flow statement is a financial statement that shows the inflow and outflow of cash in a business during a specific period of time. It reports the cash generated or used by a company’s operating, investing, and financing activities.
Cash flow management is the process of monitoring, analyzing, and optimizing the inflow and outflow of cash in a business or personal finance context. It involves managing the cash resources of an entity in a way that ensures the entity can meet its financial obligations in a timely manner, while also maximizing the use of available cash to generate revenue and grow the business.
What is Working Capital? Working capital is the difference between a company’s current assets and its current liabilities. In other words, it represents the amount of money a company has available to cover its short-term obligations and expenses. Current assets include cash, accounts receivable (money owed to the company by customers), inventory, and other assets … Read more
The cost of capital is the minimum return that a company or an investor expects to earn on their investment to compensate for the risk involved. It represents the cost of funds used to finance a business or a project and is expressed as a percentage.
The uncertainty associated with any investment decision is called market risk or systematic risk. Price volatility often arises because of unexpected fluctuations in factors that generally affect the entire financial market.
