In managing a business, understanding financial health begins with one critical figure: Cost of Goods Sold (COGS). Many first-time entrepreneurs…
Author: sterling
Profit and Loss Statement: Definition, Purpose, and How to Interpret It
Have you ever felt that your business is bustling with customers, inventory is flying off the shelves, yet by the…
Debt to Equity Ratio (DER): Formula, Function & Examples
In managing a business, understanding financial health is not merely about reviewing profit figures at the end of the month.…
Financial Ratios: Definition, Types, Formulas, and Analytical Examples
What Are Financial Ratios? Financial ratios are mathematical comparisons between one financial item and another within financial statements, used to…
How to Calculate ROE (Return on Equity) with Practical Examples
Many business owners believe their companies are “profitable,” yet when asked to explain how effectively the capital they have invested…
How to Calculate the Break-Even Point (BEP) for Business
In business practice, many entrepreneurs experience what appears to be “brisk sales” yet continue to struggle to generate profit. One…