Debt Service

Debt service refers the principle and interest portion of all long term liabilities combined. The value is customarily expressed as the amount due in one accounting period, amounts due over several accounting periods and those amounts due well in the future.

Debt or Equity in Small Business – Fundamentals

Small business books and manuals explain the formula used to determine whether additional debt increases the return for investors commonly known as return on investment (ROI).   I find this laughable in our modern economic times given the low cost of financing.   For well qualified individuals, money can be borrowed at less than 6% …

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Hospitality Industry Characterized by High Fixed Costs

There is one unique financial characteristic that is synonymous with the hospitality industry; that is high fixed costs.  Or another way of stating the same financial attribute is to simply state that the hospitality industry has low variable costs. There are several different cost drivers that force this industry to incur high fixed costs.  These...

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