Bookkeeping

Contribution margin looks similar to gross profit, which is sales minus cost of goods sold, but cost of goods sold includes fixed and variable costs. We’ll explore this in more depth when we talk about variable costing vs. full-absorption costing later in this module. Once you know that you have a net loss on your […]

The total equity of a business is derived by subtracting its liabilities from its assets. This is an essential item that is reviewed by many creditors, lenders, and investors, since it is a strong indicator of the financial strength of a business. A business with a large amount of total equity is in a better

This can be done by reviewing past financial performance and trends, as well as by considering any changes that may be coming up in the organization’s operations. As you go along, don’t be afraid to make changes and adjustments to your budget to better fit the year’s actual numbers. By making continuous adjustments, you can

You can also compare your ratio with other businesses in your industry and identify areas of improvement and opportunities for growth. By applying the concepts and tips discussed in this blog, you can improve your asset turnover ratio and increase your return on assets. The working capital turnover ratio and the fixed assets turnover ratio