How to calculate working capital
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. [1] Formula for calculating working capital:
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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
How to survive your own financial crisis
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.
Method Continue reading
How to decide whether to buy stocks or mutual funds
Stocks are securities in which you can invest a lot of money for the long term. But the question arises: buy individual shares or buy securities through mutual funds? The factors below will help you decide.
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Ask yourself if you have time to study stocks. If you have the opportunity to spend time and energy to analyze the securities market, apply it to the study of individual stocks and monitor your assets for an extended period of time – choose individual stocks. But if you do not have time or desire to do this, buy shares of a mutual fund; it may be that the best option for you would be passive investing in a series of index funds. Continue reading
How to calculate gross margin
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.
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Gross margin calculation
Image titled Calculate Gross Profit Margin Step 1 Continue reading
How to improve your business using borrowed capital
Have you ever thought about using borrowed funds to buy or open a business or rebuild some property so that buyers or tenants pay only for you.
Buy real estate without investing at all or investing some money. After reading this article, you will be surprised how you can simply and effectively raise your business, for example, find an interested seller who, using or not using a loan, will invest his own funds (or make a deposit) in the purchase of a commercial enterprise or other real estate.
The following are recommendations based on some of the business processes taking place in the USA and a brief description of what effect they can produce; Some recommendations on how to succeed will help you determine the appropriate laws and regulations that you must specifically observe in your state, because in different places the authorities, local courts, and local law are completely different from each other. Continue reading
