Finance

This category covers all kinds of topics in finance including corporate finance and financial management. The topics on financial institution and stock exchange will also be included.

How to Account for Factoring of Accounts Receivable?

Introduction The accounts receivable balance of business represents all its credit sales to customers for which it hasn’t received cash. Usually, businesses will have credit policies that will influence their account receivable balances. Different factors influence these policies. For example, it may depend on the credit terms of the industry or competitors of the business. …

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Cash Management: Definition, Objectives, Models, Strategies and Limitation

Introduction There are many resources that businesses use to generate profits. These resources are known as assets. Some of these assets are long-term while some are short-term. Examples of long-term assets also called fixed assets or non-current assets, are property, plant and equipment. Businesses use these assets for more than a single period to generate …

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How to Calculate Plowback Ratio?

Introduction The intrinsic value of a stock is different from its price in the stock market. This is mainly because other factors may also determine the value of a stock. Investors value stocks based on what they will be worth in the future rather than the stocks’ current market price. Therefore, the intrinsic value of …

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Interest Rate Risk Management: Definition and Hedging Techniques

In this article, we will cover the interest rate risk management. This includes the overview of interest rate risk management, the key definition and interest rate hedging techniques. Overview All business entities acquire financing facilities from the banks and other lenders. The cost of borrowing depends on many factors including collateral, gearing, risk exposure of …

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