Finance

What is Debt Service Coverage Ratio? Definition, Calculation, and More

Finance

Debt Service Coverage Ratio (DSCR) is a financial metric that measures a company’s ability to service its debt obligations. It is commonly used by lenders, creditors, and investors to assess the risk associated with a company’s debt and determine its creditworthiness. This article will cover the definition, formula, and uses of the Debt Service Coverage …

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How to Calculate the Solvency Ratio? (Tips to Improve It)

Finance

The solvency ratio is a financial metric that measures a company’s ability to meet its long-term debt obligations. It is calculated by comparing a company’s assets to its liabilities. The solvency ratio is an essential indicator of a company’s financial health and ability to sustain long-term operations. The solvency ratio is used by investors, creditors, …

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What Are the 3 Important Types of Monetary Systems?

Accounting, Finance

The economy is a broad term that refers to an area that involves various economic activities. These activities can range from production, distribution, and trade. On top of that, the economy also includes consuming goods and services by participants within that area. Usually, these activities are interrelated and impact how the economy operates. However, the …

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What are the Four Types of Organizational Change?

Accounting, Finance, Internal Control

Change is inevitable in the modern world. Every organization changes at some point in its lifecycle. Usually, this process is crucial to stay relevant and maintain viability. Change is also critical to help organizations grow and scale beyond their current levels. This change can come in many forms. However, these usually come with similar objectives …

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What is Discretionary Fiscal Policy? Definition, Advantages, and Disadvantages

Accounting, Finance

The economic condition of a country represents its present monetary state. It changes over time and depends on business cycles. Usually, as the economy fluctuates through periods of expansion and contraction, the economic condition also changes. The former is considered positive, while the latter falls under adverse economic conditions. Nonetheless, economic conditions play a crucial …

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What is Seasonal Unemployment? Definition, Example, and More

Accounting, Finance

Creating job opportunities is one of the primary areas where governments work. This process helps both the economy and the participants within it. However, it may be easier said than done. Several factors impact the employment rate within a nation. Sometimes, these factors may fall under the control of the government. In other cases, they …

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What is the Statement of Source and Use of Fund? Definition, Example, and More

Accounting, Finance

Companies manage finance from various sources. This finance comes from equity, debt, or other hybrid instruments. Essentially, these constitute the capital structure of a company. This structure varies from one company to another. Usually, companies operating within the same industry share similar features in their capital structure. However, other factors also influence the equity and …

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What is Consumer Sovereignty? Definition, Example, and More

Finance

There is a saying that most businesses follow religiously. “Customer is king”. In many countries, companies have adopted a strategy of listening to their customers. Based on their feedback, companies have started adjusting their products and brands. This strategy has created significantly positive results, both financially and non-financially. However, it may have also led to …

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