Financial Health
The DuPont analysis is essential for financial analysis. Learn what is DuPont analysis, how to calculate ROE using the 3-step and 5-step formulas, and see a practical DuPont analysis example to dissect profitability and risk.
Financial Health
Understand the return on assets definition and its importance for measuring asset efficiency. Learn the return on assets formula, how to calculate return on assets, and determine what is a good ROA for any industry.
Equity & Capital
The equity ratio is a critical leverage ratio showing financial strength. Use the equity ratio formula to calculate your proprietary ratio, understand equity ratio interpretation, and learn why a high equity ratio signals stability.
Financial Health
The solvency ratio is crucial for assessing long-term financial stability. Learn the solvency ratio formula, explore different types of solvency ratios, and understand the importance of solvency ratio analysis for investors and creditors.
Financial Health
Understand the critical difference between quick ratio and current ratio. These essential liquidity ratios use different liquid assets to assess financial health. Get the quick ratio formula and current ratio formula to master quick ratio interpretation and know when to use quick ratio vs current...
Financial Health
The interest coverage ratio (times interest earned ratio) is vital for assessing debt affordability. Learn the interest coverage ratio formula, perform the EBIT calculation, and determine if your company has a good interest coverage ratio or risks a negative interest coverage ratio.
Financial Health
The debt ratio is a vital financial leverage ratio. Learn the debt ratio formula, total debt calculation, and expert debt ratio interpretation. Compare the debt ratio vs debt to equity ratio to assess true financial risk and stability.
Financial Health
Master the earnings per share calculation. Learn how to calculate EPS, understand the difference between basic and diluted EPS, and grasp the importance of EPS for valuation. Discover how to interpret EPS and identify potential EPS manipulation.
Assets
Understand the critical bonus depreciation changes. Learn how to calculate bonus depreciation accurately, identify what property qualifies for bonus depreciation, and strategically manage the bonus depreciation phase-out to maximize your immediate tax savings this year.
We strip away the "accountant-ese" to reveal the raw truth about your business. Practical guides on cash flow, ratio analysis, and profit margins for operators who hate spreadsheets.
Get a clear balance sheet definition and understand its core components. Learn the fundamental accounting equation (assets liabilities equity) and essential balance sheet analysis techniques, including the debt-to-equity ratio, to assess financial health.
Accounts receivable is a current asset, not revenue. Understand the key difference between accounts receivable vs revenue, why it is a debit, and how to record accurate accounts receivable journal entries, including provisions for bad debt.
Understand the core of your business finances. Learn what is service revenue, how to calculate service revenue, and the correct service revenue journal entries. Clarify the difference between temporary vs permanent accounts and why service revenue is not an asset.
Understand the accounts payable definition and why it is a liability. Learn if accounts payable is a permanent account, master the correct accounts payable journal entry (debit or credit), and implement crucial accounts payable fraud prevention strategies for effective accounts payable management.
Retained earnings are the profits a company keeps to reinvest in growth, not paid as dividends. Understand the retained earnings definition, how this equity account appears on the balance sheet, and what causes retained earnings to increase or result in an accumulated deficit.
Unearned revenue is a liability, not an asset. Learn the essential accounting for unearned revenue, including initial and unearned revenue adjusting entry steps. Understand why is unearned revenue a liability and review key unearned revenue examples.
The quick ratio is vital for assessing immediate financial health. Learn the quick ratio formula, understand the importance of quick ratio, and see how it compares to the current ratio vs quick ratio vs cash ratio to master liquidity ratios.
Understand if accumulated depreciation is an asset or liability. Discover why this contra asset account has a credit balance and how it appears on the balance sheet. Master the difference between accumulated depreciation and depreciation expense for accurate financial reporting.
Stop losing money on bids. Learn how to calculate predetermined overhead rate (POHR) using the exact formula. This guide provides step-by-step instructions for accurate indirect cost allocation and superior product costing decisions.
Stop guessing unit costs. Learn what is process costing, including the process costing formula and the 5 process costing steps. Discover the advantages of process costing and how to calculate what are equivalent units in process costing for mass production clarity.
The debt to EBITDA ratio is a vital leverage ratio for financial ratio analysis. Understand the ebitda meaning, learn how to calculate debt to ebitda ratio, and master debt ratio interpretation to assess a company's financial health and risk of a high debt to ebitda ratio.
Understand the normal balance of retained earnings and its purpose. Learn what increases retained earnings and what causes retained earnings to decrease, especially regarding retained earnings and dividends. Master the essential journal entries today.
