This article will guide you about how to calculate return on investment with the help of an example. Investment may refer to capital employed, total assets or owner’s equity or net worth. Again capital employed may be gross capital employed or net capital employed. Also, return may be pre-tax return or after-tax return. Return may be expressed in terms of [...]
This article throws light upon the four main types of financial ratios. The types are: 1. Liquidity Ratios 2. Activity Ratios 3. Leverage Ratios 4. Profitability Ratios. Type # 1. Liquidity Ratios: Liquidity ratios reflect the firm's ability to meet scheduled short-term obligations. For the firm to remain alive, it must be able to pay its bills as they become [...]
After reading this article you will learn about:- 1. Meaning and Concept of Capital Structure 2. Balanced or Optimum Capital Structure 3. Essentials Characteristics 4. Objectives 5. Factors. Meaning and Concept of Capital Structure: For any business (investment) project, it is essential to estimate the amount of capital likely to be required for the business. After having determined the finance [...]