Definition A coverage ratio can be defined as a measure of the company’s ability to pay back its debt and meet its financial obligations. In this regard, the coverage ratio is used as a determinant to gauge the overall efficacy of the company in terms of its financial standing in line with its ability to …
What is the Coverage Ratio? – Definition, Types, And Examples Read More »
What is Hybrid Financing? In the modern-day and age, obtaining finances at an effective rate is paramount to the success of the business. In this regard, it is important to realize the fact that there are numerous different mechanisms that the organization has pertaining to sourcing finance for various purposes. In the recent past, hybrid …
Hybrid Financing – Definition, Types, Advantages, and More. Read More »
Budgetary control is a concept of financial accounting that helps oversee an organization’s payments and receipts. It provides a greater tool to plan, monitor, and control financial activities within an organization. The concept of budgetary control can be linked with liquidity and cash flow management. However, the concept of budgetary control is not limited to …
What is the Budgetary Control? – Concept, Objectives, Types, And More Read More »
Overview Cash Flows are considered to be one of the most important financial metrics within the company. As a matter of fact, it is highly important to consider the fact that it mirrors the overall ability of the company to not only pay their day-to-day operations but also have sufficient cash in order to finance …
Levered Cash Flow Vs. Unlevered Free Cash Flow – What Are the Different? Read More »
NPR and NCR are the mathematical notation of two important concepts in mathematics, referred to as permutations and combinations. Both these concepts are similar in terms of what they mean to achieve, yet they are also different on a number of grounds. Permutation – what are they? A permutation is referred to as a mathematical …
NPR Vs. NCR – What Are they? And What Are the Different? Read More »
Introduction Bond is usually priced as a percentage of par, or face value. However, depending on many factors, bond prices fluctuate over time. This is mainly because of the fact that there are numerous different factors, like interest rate, and compounding type, that impacts the overall bond price. For bond investors, it often gets confusing …
Clean Price Vs. Dirty Price – What Are the Differences? Read More »
Introduction Capital budgeting techniques are considered to be an important source of information, predominantly because of the fact that there are numerous different factors that come into play when it comes to considering projects involving considerable investment. In this regard, it is considered important from the perspective of the accountants to ensure that these techniques …
Crossover Rate: What Is It and How To Calculate It? Read More »
Introduction Bonds are often a top choice of investment for almost all investor classes. This is because of the lower risk element involved when it comes to bonds. There are numerous types of bonds, which are commonly used. Amortized Bonds and Bullet Bonds are two of the most important bond types that are most commonly …
All of us familiar with the stock markets. Stock markets are the marketplaces where financial instruments and securities like bonds and stocks are traded. The market where the foreign currencies are bought and sold is called Forex or Foreign Exchange Market. Understanding and becoming part of the stock markets is an art, and only the …
What Do Short Sales Against the Box Really Mean? Explained Read More »
A Debt Service Fund is referred to as a cash reserve that is maintained by the organization in order to pay its dues and obligations on time. These dues and obligations mainly take the form of principal and interest payments on certain types of debt. The main reason for the creation of the debt service …
Debt Service Fund – Definition, Example, And How Does Debt Service Fund work? Read More »
