A nominal ledger is the primary source document for the accounting records of a business. It forms the basis of an accounting system in any business. Nominal ledger records all financial transactions categorizes them into different classes and provides useful information to the users. Let us discuss what is a nominal ledger, how it works, …
Goods received note (GRN) is a confirmation of the goods received from the seller. It is issued by the buyer with multiple copies. A GRN serves many purposes for the buyer, the shipping company, and the seller. Let us discuss what is a goods delivery note, how it is issued, and what are its advantages …
The economic value added (EVA) is a tool to measure the financial performance of an entity. It comes with several advantages as compared to the traditional profit-based metrics. Let us discuss what is EVA and its pros and cons as compared to other financial performance measurement tools. What is Economic Value Added (EVA)? Economic value …
The economic value added (EVA) is the value added by an entity by utilizing its capital resources. Unlike profitability, it considers both debt and equity sources of capital. Let us discuss what is EVA, its important components, and how it is calculated. What is Economic Value Added (EVA)? The economic value added (EVA) is the …
What is Economic Value Added (EVA) and How to Calculate It? Read More »
Net operating profit after tax (NOPAT) is an important profitability and efficiency metric. It tells us about the operational efficiency of a business. NOPAT can be used to analyze the impact of debt financing (leverage) on the profits of a business. Thus, it is a core measure of the profits generated through the operations of …
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Interim dividends and final dividends are two common types of dividends issued by most companies. Established companies follow a consistent dividend policy to offer income to dividend investors. Both types of dividends offer some advantages and disadvantages to the issuers. Let us discuss what are interim and final dividends and their key differences. What is …
Interim Dividend Vs Final Dividend – Key Differences (Including Pros and Cons) Read More »
Simple average and weighted average are two widely used methods of allocating averages of data sets. Both methods are useful with some pros and cons for each. Let us discuss what are these methods and their key differences. What is a Simple Average? A simple average refers to a number that is derived by adding …
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Penetration pricing and price skimming are two contrasting pricing strategies. Both strategies come with different objectives. Let us discuss what are penetration and skim pricing strategies and their key differences. What is Penetration Pricing? Penetration pricing is a pricing strategy where the seller sets low prices initially. It aims to attract more customers and quickly …
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Internal and external sources of financing help businesses fulfill their capital requirements. Both types of financing offer discrete benefits and some limitations to the business. Let us discuss what are external and internal sources of financing and their key differences. What are Internal Sources of Financing? Internal sources of financing are the financial sources of …
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Horizontal and vertical integration are two major corporate strategies. Both strategies offer different types of business growth and expansion opportunities to the parties involved. Let us discuss what are horizontal and vertical integration strategies and their key differences. What is Horizontal Integration? Horizontal integration refers to a scenario when two or more entities in the …
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