Definition Enterprise value (EV) is a financial metric used to determine the total value of a company, taking into account both its equity and debt. What is enterprise value? This metric represents the theoretical takeover price a buyer would pay to acquire the entire business, including all outstanding debt and obligations. Here’s a list of […]
Definition A down payment is an upfront, initial payment made by a buyer as part of a larger transaction, typically for the purchase of a high-value item or property. What is a down payment? A down payment represents a percentage of the total cost and is paid at the outset of the transaction to secure […]
Page written by Chris Godfrey. Last reviewed on September 24, 2024. Next review due October 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five […]
Definition Crowdfunding is a method of raising capital where a large number of individuals each contribute a relatively small amount of money to support a specific project or idea and is an alternative to traditional methods of financing. What is crowdfunding? Crowdfunding can be used to fund a wide array of projects and operates through […]
Definition A credit score is a numerical representation of your creditworthiness, which is used by lenders to assess the likelihood of a borrower repaying their debts. What is a credit score? A credit score is based on an analysis of your credit history, including your borrowing and repayment behaviour, and is a crucial factor in […]
Inflation calculator Our inflation calculator helps you understand how the purchasing power of money changes over time due to inflation. Page written by Ian Hawkins. Last reviewed on June 3, 2024. Next review due October 1, 2025. Ian Hawkins Head of Content Ian Hawkins is Head of Content at Swoop. As a freelance business journalist […]
Mortgage overpayment calculator Overpaying on either a residential or commercial mortgage offers significant benefits. It reduces total interest costs and shortens the repayment period. This leads to accelerated equity buildup and increased financial flexibility. Even modest, regular overpayments can yield substantial interest savings over time. Page written by AI. Reviewed internally on June 3, 2024. […]
Definition A buyout refers to an individual, group of individuals, or another company purchasing a majority stake in the target entity, giving the buyer substantial control over its operations, decision-making, and future direction. Buyouts can occur for various reasons. What is a buyout? Types of buyouts: Management buyout (MBO): In a MBO, the current management […]
Definition A business plan is a document that outlines a company’s goals, objectives, strategies, and operational plans. It serves as a roadmap for the business, providing a detailed overview of how the company intends to achieve its mission and vision. What is a business plan? A well-structured business plan is crucial for attracting investors and […]
Definition Break-even analysis is a financial assessment tool used by businesses to determine the point at which total revenue equals total costs, resulting in neither profit or loss. What is a break-even analysis? It’s a critical component of financial planning and decision-making for businesses of all sizes. The analysis helps companies understand the minimum level […]
Definition Asset-based lending is a form of business financing where a company secures a loan or line of credit using its assets as collateral. Unlike traditional loans that primarily rely on creditworthiness, asset-based lending is based on the value of the company’s assets, such as accounts receivable, inventory, equipment, and real estate. What is asset-based […]
Page written by Chris Godfrey. Last reviewed on November 4, 2024. Next review due October 1, 2025. Chris Godfrey Expert financial copywriter Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five […]
Definition The acid-test ratio, also known as the quick ratio, is a financial metric used to evaluate a company’s ability to cover immediate financial obligations without relying on the sale of inventory. What is an acid-test ratio? The acid-test ratio is calculated using the following formula: Acid-test ratio = current asset – inventory / current […]
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