Yes, this happens when a company finances more through debt than equity. While common in capital-intensive industries, excessive liabilities can signal financial risk. This total matches the company’s assets, ensuring the balance sheet is balanced. Utilizing Equity for Business Growth Equity is also known as shareholder’s equity and is easily available as a line item…
Therefore, contribution margin ratio is usually higher than gross margin ratio, unless the business has no fixed costs in its COGS. The sales volume is the number of units or quantity of products or services that you sell. The market share is the percentage of the total market that you capture with your sales. The…
When we talk about assets on a balance sheet, we’re talking about all the things a business owns that have value. To make it easy to understand, we sort these assets into two main groups. Classifying items on a balance sheet helps us see a clear picture of a company’s money, what it owns, and…
I thought that wine was the glue, holding my life together, helping me cope with my kids, my stressful job and my busy life. I didn’t realize that my love affair with drinking was making me more anxious and less able to manage my responsibilities. Further advancement in treating addiction requires short and long-term strategies,…