The balance of debt and equity that comprises a company's financing is known as its debt-to-equity-ratio.
Category archives: Finance Academy
The simplest way to define an implicit cost is ‘the use of an asset you already own, that you didn't buy or lease’.
Depreciation is a method in accountancy of sharing out the cost of an asset over its expected or useful life. Another way of understanding this is to think of it as showing how much of the value of an asset has already been used.
Working capital is what’s left when the sum of a company's current liabilities (including accounts payable to it by customers or clients) is deducted from its total current assets.