What is High-low point method?
Accounting

What is High-low point method?

High-low point method is often a technique used in order to divide a merged cost into their variable and set components. Sometimes it will be…
Financial Leverage: Theory and Mathematical Explanation
Accounting

Financial Leverage: Theory and Mathematical Explanation

Financial leverage (or simply leverage) means acquiring assets while using funds provided by means of creditors and desired stockholders for the main benefit of common…
Preparation of common size statement: Mathematical Solution
Accounting

Preparation of common size statement: Mathematical Solution

Common size statement is one in which all the items are expressed as a percentage of a base item.¬†Common size statements are helpful in discovering…
Vertical analysis of financial statements: Mathematical Solution
Accounting

Vertical analysis of financial statements: Mathematical Solution

Vertical analysis (common-size analysis) is usually a popular method involving financial statement analysis that shows each item on a statement as a portion of a…
Horizontal analysis of financial statements: Mathematical Solution
Accounting

Horizontal analysis of financial statements: Mathematical Solution

Horizontally analysis is usually a financial statement research technique that shows changes within the amounts of corresponding financial statement items over a period of time.…
Capital Gearing Ratio: Mathematical Solution
Accounting

Capital Gearing Ratio: Mathematical Solution

Capital gearing ratio is a useful tool to investigate the capital structure of any company and also computed by dividing more common stockholders equity by…
Fixed Assets to Equity Ratio: Mathematical Solution
Accounting

Fixed Assets to Equity Ratio: Mathematical Solution

Fixed assets to equity ratio measures the contribution of stockholders as well as the contribution of debt sources within the fixed assets with the company.…
Proprietary Ratio: Mathematical Solution
Accounting

Proprietary Ratio: Mathematical Solution

The proprietary ratio (also referred to as net worth percentage or equity ratio) is needed to evaluate the soundness in the capital structure of any…
Times Interest Earned Ratio: Mathematical Solution
Accounting

Times Interest Earned Ratio: Mathematical Solution

Times interest earned ratio shows the amount of times the 12-monthly interest expenses are included in the net running income (income previous to interest and…
Debt to Equity Ratio: Mathematical Solution
Accounting

Debt to Equity Ratio: Mathematical Solution

Debt to equity ratio can be a long term solvency percentage that indicates the particular soundness of long-term financial policies with the company. It shows…
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