Gearing refers to the relationship between the company’s debt to equity. It is expressed in a ratio. It shows the extent to which lenders versus shareholders fund the firm’s operations. It measures financial leverage in a nutshell. When the debt-to-equity ratio is great, the business may be highly geared or highly leveraged. Financial gearing This …
What Is Financial Gearing? And Why Is It Happening? Read More »
Definition: Leverage refers to increased means of accomplishing the purpose of the company. In the financial world, leverage refers to using fixed-cost assets or funds to increase the return to its shareholders. The leverage related to investment activities is called operating leverage. Operating leverage: Operating leverage is caused by to nature of fixed costs incurred …
What is Operating Gearing? Definition, Formula, Example, and Usages Read More »
Financial management is one of the important aspects of finance. Every beginner must start a business or a company with financial knowledge and management strategies. Finance is directly linked to various departments like marketing, production, and personnel. Any business must expect the investments to be made so that returns are higher than the cost of …
5 Nature and 7 Scope of Financial Management You Should Know Read More »
A scrip dividend provides shareholders with the option of receiving a cash dividend or common stock. When a company issues a scrip dividend, it allows shareholders to increase its holdings’ size without incurring any fees. Scrip dividends may be used when issuers have too little cash available for paying a cash dividend, but still wants …
What is Scrip Dividend? Issuing, Advantages, Disadvantages Read More »
Internal sources of finance are generated internally by the business-like retained earnings, sale of assets, debt collection, and discounted selling. Internal sources of finance are easily accessible, simple, and save a lot of effort. Internal financing is the preferred means of raising finance for companies that want to remain debt-free. 1) Retained Earnings Retained earnings …
7 Best Internal Source of Fund That Company Could Benefit From (Example and Explanation) Read More »
