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Today's term of the day: Equity Equity, in simple terms, is the money that is returned to all the shareholders of a company, if all the company's assets are liquidated and liablities are paid off. It is also a measure of the financial health of a corporation. From the definition, it's kinda obvious how to calculate equity: It's literally just assets - liabilities. If assets exceed liablities, the company is said to be solvent and is also said to have positive equity. If liabilities exceed assets, the company is said to be insolvent and is also said to have negative equity. All in all, equity is a fancy term that tells you how much of a company belongs to the shareholders
Trying to do betterย โขย 10m
Day 11 About Basic Finance and Accounting Concepts Here's Some New Concepts Equity, in finance, represents the ownership value held by shareholders in a company. It is essentially the difference between a company's total assets and its total liabili
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Daily dose of financial ratios by Anirudh Gupta Debt/equity ratio =Total debt/Shareholders equity Purpose: It helps users of financial statements understand how much debt the company is using for every โน1 of equity invested by shareholders. Cred
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Set2Scoreย โขย 1y
๐๐ผ๐บ๐ฝ๐ฎ๐ป๐ ๐ฉ๐ฎ๐น๐๐ฎ๐๐ถ๐ผ๐ป : A process of determining the current worth of a company. This can be done using various methods like comparing with similar companies, analyzing future revenue potential, or looking at assets and liabilities. Le
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The Institute of Chartered Accountants of Indiaย โขย 1y
Have you read the book "Rich Dad, Poor Dad" written by "Robert Kiyosaki" . he is a genius. He admitted to having more than $1.2 billion in debt ๐คฏ. you might have watched his yt Shorts claiming that. He views this debt as a strategic move and a par
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Complicated Business Terms Simplified PART 2 1๏ธโฃ Equity: ๐ The ownerโs share in a company after subtracting liabilities from assets. 2๏ธโฃ Cash Flow: ๐ The actual movement of money in and out of a business, crucial for daily operations. 3๏ธโฃ Reven
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Today's term of the day: Dividends When a company makes a profit, it can choose to share a portion of the profit with its shareholders as a reward for their investment. This "reward" given by the company to it's shareholders is called a dividend Di
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What is FPO? FPO abbreviated as Follow-on Public Offer is a process in which an existing company listed on the stock exchange issue new shares to the existing shareholders or to the new investors. It is different from an IPO where the company issue
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YouTubeย โขย 1y
The ABCs of Entrepreneurship and Businesses #Day 2 7. Accounts Receivable: Amounts owed to a business by customers for goods/services on credit. 8. Accounts Payable: Amounts owed by a business to suppliers/creditors for purchases on credit. 9. Gro
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