Working capital – a combination of cash and liquid assets that are necessary to finance the activities of the company. Knowing the amount of working capital, you can more effectively manage the company and make investment decisions. The value of working capital characterizes the ability and speed of repayment of the current obligations of the company. If the company does not have working capital or is very modest, then most likely it will not be successful. The calculation of working capital is also useful for evaluating the efficient use of company resources.  Formula for calculating working capital:
Hang current assets. Current assets are assets that can be converted into cash within one year. Such assets include cash and short-term capital. For example, accounts receivable, deferred expenses and stocks are current assets.
As a rule, current assets and their total value are indicated in the balance sheet of the company. Continue reading
A personal financial crisis can be the result of many events: job loss, divorce, bankruptcy, sudden medical expenses or any other events that cause financial stability to be lost. Whatever the reason, the consequences are always the same: stress, confusion, inability to control the situation, loss of self-confidence. Although it can be difficult to survive the financial crisis, it is important to remember that it is possible to regain control of the situation. Everything can be adjusted if you pack up and start acting.
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Gross profit is a fairly simple indicator showing the difference between the proceeds from the sale of goods and their cost. Gross profit ratio is the ratio of gross profit to total revenue, expressed as a percentage. Gross profit margin is a quick and useful way to compare the performance of a particular company and the performance of other companies in a specific industry. This coefficient can also be used to compare the current and past state of the company – in particular, it is useful for companies operating in markets where prices for goods vary significantly.
Gross margin calculation
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