The percentage change is calculated by first dividing the dollar change between the comparison year and the base year by the line item value in the base year, then multiplying the quotient by 100. Last, a horizontal analysis can encompass calculatin... Read more
Storage fees are the 2nd-largest portion of holding costs (besides the initial capital investment). So, they decide to calculate their annual inventory holding cost to see how much these slow-moving products cost them. Meaning, overstocking right no... Read more
In contrast, net sales are the total revenue of a company after the deduction of returns, discounts, and allowances. Instead, they show the pure profit of a company over a given period of time. Gross sales measures a company's total sales without ad... Read more
A company calculates gross income to understand how the product-specific aspect of its business performed. By using gross income and limiting what expenses are included in the analysis, a company can better analyze what is driving success or failure... Read more
First, get the book value of all assets on the target’s balance sheet. This includes current assets, non-current assets, fixed assets, and intangible assets. You can get these figures from the company’s most recent set of financial state... Read more
Usually, liquidation value is applied when investors feel a company no longer has value as a going concern, and they want to know how much they can get by selling off the company’s tangible assets and such of its intangible assets as can be so... Read more
Unlock full control and visibility of disputes and provide better insight into how they impact KPIs, such as DSO and aged debt provisions. Perform pre-consolidation, group-level analysis in real-time with efficient, end-to-end transparency and trace... Read more
Investors should be skeptical about non-GAAP measures, however, as they can sometimes be used in a misleading manner. IFRS is a standards-based approach that is used internationally, while GAAP is a rules-based system used primarily in the U.S. IFRS... Read more
The “time value of money” states that a dollar today is worth more than a dollar tomorrow, so future cash flows must be discounted back to the present date to be comparable to present values. The concept of future value is often closely... Read more
The funds in the account are used for unemployment compensation payments to workers who have lost their jobs. Although the amount of the FUTA payroll tax is based on employees' wages, it is imposed on employers only, not their employees. As such, FU... Read more
