The balance sheet common size analysis mostly uses the total assets value as the base value. A financial manager or investor can use the common size analysis to see how a firm’s capital structure compares to rivals. They can make important observations by analyzing specific line items in relation to the total assets. Common size… Continue reading Vertical Financial Statement Analysis
Category: Forex Trading
Vertical Analysis: What It Is and How It Can Help You Understand Your Financial Position
One of its cons is that it doesn’t take into consideration absolute numbers; so if you are comparing two companies, looking at percentages will give a different result than absolute numbers. By analyzing these ratios using vertical analysis, you can gain insights into a company’s cash flow management and capital allocation strategies. Vertical financial statement… Continue reading Vertical Analysis: What It Is and How It Can Help You Understand Your Financial Position
Boolean Algebra Expression, Rules, Theorems, and Examples
If a system needs to access continuous data or probabilistic data then Boolean algebra can’t be used as it has only two value(0, 1). Boolean algebra is used to develop complex search queries in legal databases. Further work has been done for reducing the number of axioms; see Minimal axioms for Boolean algebra. Search Engines… Continue reading Boolean Algebra Expression, Rules, Theorems, and Examples
Average Collection Period & Days to Collect Calculator
The average collection period for account receivables tells you which client pays earlier and which prolongs dues. Knowing their payment patterns, you can modify and effectuate your communication with them and follow-up messages. Receiving early payments is essential to plan your financial forecasts the right way and adhere to budgets accurately. When you know the… Continue reading Average Collection Period & Days to Collect Calculator