Business Administration

Tag: Quick Ratio

  • Working Capital Cycle

    Working Capital Cycle

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    by

    David J Hoare MSA
    in

    The college textbook definition of working capital is current assets minus payables and accrued expenses. The term explains the dollar value of flexibility a business operation has to take advantage of immediate opportunities or endure sudden or long-term setbacks. Since it is a balance sheet based formula the value is a function of a moment…

  • EBITDA – Drawbacks

    EBITDA – Drawbacks

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    by

    David J Hoare MSA
    in

    There are several business financial attributes required for EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) to work well as a basis for the multiple of earnings method (the method used with the Market Comparable Valuation Approach); see Fair Market Value for a better understanding of the three primary business valuation approaches.

  • Working Capital Management – Fundamentals

    Working Capital Management – Fundamentals

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    by

    David J Hoare MSA
    in

    Working capital management is a function of finance whereby management ensures adequate cash is available to meet operational needs over the typical working capital cycle.