A business is only worth the profit that it will generate for its owners from now until doomsday, discounted back to the present, adjusted for inflation. As the “report card” of those earnings, income statement will help determining the price you should be willing to pay for a business.
Income statement, also called profit and loss [...]
Revenue does not come in at the same time as costs have to go out. This is the main problem facing by most of business companies and the whole point about cash flow. Proper management of cash flow is important in the smooth running, survival and success of a business.
The statement of cash flow is [...]
Gross margin is one of several profit margin measures. It is the amount of contribution to the business after paying for the costs that it incurs for producing its products and/or services.
Basically,
Gross Margin = (Revenue – Cost of Goods Sold)/Revenue
Cost of goods sold includes variable and fixed costs directly linked to the product, such as [...]
Basically the stock market tends to decline on news of rate increases.
When a country raises the interest rate for its currency, we would expect that currency to gain in value relative to other currencies. This is because an increase in a currency’s interest rate makes it more valuable to hold as an investment, due to [...]
