capital structure

Management

What is Financial Health? & How to Stay Financially Fit?

Imagine your finances as a vibrant ecosystem, a dance between income, expenses, investments, and goals. Financial health, then, is the state of this ecosystem – its balance, resilience, and ability to thrive. It’s not just about accumulating wealth, but about feeling secure, in control, and equipped to weather life’s financial storms.

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Economics

What is EBITDA? Why it Matters? [PDF Inside] Calculation, Limitations, Interpretation, & Case Studies

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It’s essentially a way of looking at a company’s financial health through a specific lens. Imagine it as a financial x-ray that strips away financing choices, tax complexities, and accounting estimates, allowing us to focus on the core operational muscle of the business. By excluding these non-operating factors, EBITDA gives us a clearer picture of how efficiently a company generates cash through its core business activities.

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Economics

Cost of Capital: Types, Component, Formula, Impact, & Importance

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.

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