Unlike the debt-assets ratio which uses total assets as a denominator, the D/E Ratio uses total equity. This ratio highlights how a company’s capital structure is tilted either toward debt or equity financing. When evaluating a company's financial health, you can use several liquidity ratios. One is the debt-to-equity (D/E)...

Unlike the debt-assets ratio which uses total assets as a denominator, the D/E Ratio uses total equity. This ratio highlights how a company’s capital structure is tilted either toward debt or equity financing. When evaluating a company's financial health, you can use several liquidity ratios. One is the debt-to-equity (D/E)...

Small business owners get more deductions with AI-powered expense tracking and receipt matching. Our team ranked all the best accounting solutions using a points-system for each category. Once they were done, they compiled all category scores https://www.online-accounting.net/ for each brand into a single 5-point score. This allows us to rank...

Let’s say you operate a medium sized business and you maintain $1,000,000 balance in the company savings account. This money does not sit idle in the account until you choose to withdrawal it. The bank loans this money out to other people and collects interest on the loan. The bank...

The interest rates and the volume of interest-earning assets are the primary factors influencing the interest income generated by banks. This straightforward calculation provides an accurate measure of the net amount earned from interest-related activities. It enables financial institutions to evaluate the profitability of their lending operations and identify any...

Sage has a slight edge as it has nine invoice templates, and there's no limit to the number of invoices you can send on either plan. Now that we covered the basics, let's compare Sage vs Xero in terms of key features and functionality to see which one stands out...

If you need a primer on this, check out the next two picks on our list for a more thorough breakdown of these accounting principles. It could be one of the first books you read to start your bookkeeping or accounting journey, before pursuing topics in greater depth, as needed....

For example, the United States Department of Agriculture keeps a close eye on how the relationship between farmland assets, debt, and equity change over time. A higher D/E ratio means that the company has been aggressive in its growth and is using more debt financing than equity financing. Over time,...

For example, imagine a company reports $1,000,000 of cash on hand at the end of the month. Without context, a comparative point, knowledge of its previous cash balance, and an understanding of industry operating demands, knowing how much cash on hand a company has yields limited value. This category is...

In Liveplan's case, you do have a dozen financial metrics available (net cash flow, account payable, cash on hand…) and another dozen graphs. But SaaS metrics are absent, which is a bummer for SaaS entrepreneurs. Alexander Jarvis' model is most lavish when it comes to that point. Create your balance...