The Times Interest Earned ratio is calculated by dividing a company’s earnings before interest and taxes by its periodic interest expense. As you can see, creditors would favor a company with a much higher times interest ratio because it shows... Read more
Funds of hedge fund managers should also put in place policies and procedures to manage the liquidity risk of the fund so that fund investors do not suffer undue difficulty when redeeming their units. For example, equity strategies can provide high... Read more
The four perspectives of a balanced scorecard are learning and growth, business processes, customer perspectives, and financial data. These four areas, which are also called legs, make up a company's vision and strategy. As such they require a firm'... Read more
In this risk scenario, investors hold fixed-rate debts during times of rising market interest rates. These investors may find their debt returning less than what is available from other investments paying the current, higher, market rate. If this ha... Read more
Accounts receivable financing agreements can be structured in multiple ways usually with the basis as either an asset sale or a loan. Account receivable, any amount owed to a business by a customer as a result of a purchase of goods or services from... Read more
These contracts involve a buyer and seller, where the buyer pays a premium for the rights granted by the contract. Call options allow the holder to buy the asset at a stated price within a specific timeframe. Put options, on the other hand, allow th... Read more
Commercial real estate collateralized debt obligations are collateralized debt obligations backed primarily by commercial real estate loans and bonds. Our group of more than 45 full-time structured finance lawyers draws on our extensive experience w... Read more
ISO has designated SWIFT to act as the registration authority for national IBAN formats. Only a national standards body or a national central bank can request a national IBAN format registration for its country. Subtract the remainder from 98 and us... Read more
The higher the percentage the more debt is being relied on to fund the business. You may be using certain vendors who are outside of your budget, for example. Reevaluating operating expenses can improve your debt-to-income ratio and increase your o... Read more
If the owner needs particular expertise and an angel investor has that expertise, the owner may be willing to swap a piece of the business for the expertise. Small business bank loans may be hard to obtain until the business has been open for one ye... Read more