What is Extinguishment of Debt? Extinguishment of debt occurs when debt is eliminated from a company’s balance sheet. This can happen for a number for…
What is an Inferior Good? In economics, an inferior good is a good whose demand has an inverse relationship with consumer income. This means that…
You’ll see the term “borrower” used when buying a new home, financing a car, or obtaining a business loan. Read on to learn about the…
When you run a company, debt is inevitable — especially during growth periods. If you take on too much, however, the payments can eat into…
When a lender is assessing the credit risk of a potential borrower, they will often utilize an important financial concept known as tangible net worth.…
For many small businesses, the day-to-day operations can be overwhelming. Keeping track of cash flow, invoices, customer receipts, and more can seem like too much…
Earnings before interest and taxes (EBIT) is an important concept when analyzing the financial performance of a company. Learn why EBIT is useful for your…
What is marginal cost and how do you calculate it? Our marginal cost calculator will assist you in computing the cost of manufacturing additional items.…
Gearing ratios are a group of financial ratios that are used to assess a company’s leverage and financial stability. What are the gearing ratio formulas…
The 5 C’s of credit or the five characteristics of credit is a system that many lenders use for credit analysis. Lenders use this framework…