Definition Cost of capital refers to the total cost a company incurs in order to raise funds for its operations and investments. It represents the overall expense of utilising various sources of financing, such as equity (stocks) and debt (loans or bonds), to support the company’s activities. What is cost of capital? The cost of […]
Definition Depreciation refers to the systematic allocation of the cost of a tangible asset over its useful life. It is an accounting method used to recognise the gradual reduction in the value of an asset as it is used, consumed, or becomes obsolete over time. What is depreciation? In simpler terms, when a company purchases […]
Definition A dividend is a payment made by a company to its shareholders out of its earnings or profits. It represents a distribution of a portion of the company’s financial success to those who hold its shares. What are dividends? Dividends are typically paid in cash, although they can also be paid in the form […]
Definition Fundamental analysis is a method used to evaluate the intrinsic value of a financial asset, such as stocks, bonds, or currencies, by analysing the underlying factors that affect its value. What is a fundamental analysis? It involves studying the fundamental economic, financial, and qualitative factors that can influence the asset’s price over the long […]
Definition A going concern, in accounting and business terms, refers to a company’s ability to continue its operations and meet its financial obligations in the foreseeable future. What is a going concern? When a company is considered a “going concern,” it is assumed that it will continue its business activities without the intention of liquidation […]
Definition Inflation refers to the sustained increase in the general price level of goods and services within an economy over a specific period of time. What is inflation In simpler terms, it means that over time, the cost of goods and services tends to rise, causing the purchasing power of money to decrease. This rise […]
PayPal fee calculator PayPal fees can vary depending on factors like the transaction amount, currency, and type of transaction (e.g., goods and services, personal payment, etc.). Page written by AI. Reviewed internally on June 3, 2024. × How to calculate PayPal fees Identify Transaction Amount: Determine the total amount of the transaction before fees. Determine […]
Business savings calculator A business savings calculator is a tool that allows you to estimate how much money your business can save over a certain period of time by making specific changes or improvements. Page written by AI. Reviewed internally on June 3, 2024. × Target savings Savings growth Target savings amount $ .00 Investment […]
WACC calculator The Weighted Average Cost of Capital (WACC) is a financial metric that represents the average cost of financing a company’s assets, considering both debt and equity components. Page written by Ian Hawkins. Last reviewed on June 13, 2024. Next review due October 1, 2025. Ian Hawkins Head of Content Ian Hawkins is Head […]
Rate of return calculator To calculate the rate of return, you’ll need the initial investment value, the final investment value, and the time period over which the investment was held. Page written by Ian Hawkins. Last reviewed on June 7, 2024. Next review due October 1, 2025. Ian Hawkins Head of Content Ian Hawkins is […]
More than 5 million businesses were launched in the US in 2022. They joined the millions of existing organisations that already power our economy. Some of these many businesses will fail, but many others will succeed, with some becoming giants and major household names. But what is it that makes the difference between a business […]
ADR calculator The ADR is a common metric in the hospitality industry and is used to assess the financial performance and revenue generation of a hotel. Page written by AI. Reviewed internally on June 24, 2024. × How to calculate average daily rate To calculate the ADR, you need two pieces of information: Room revenue: […]
Loss ratio calculator A loss ratio calculator is a tool used to determine the ratio between the losses incurred by an insurance company and the premiums it collects. This ratio is a key metric in the insurance industry and is used to assess the financial performance and profitability of an insurance company. Page written by […]
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