It is determined by dividing a company’s total debt (short-term and long-term) by its total equity. An alternative approach is to measure financial risk using cash flow leverage ratios, which help determine if a company’s debt burden is manageable given its fundamentals (i.e. ability to generate cash). The most important leverage ratio is the debt [...]

If you have unsold units, the fixed overhead costs will eventually be transferred to your expense reports, which will eat your profits. So while overproduction can be a great way to cut costs, you must ensure you can sell everything you produce. In addition to the direct material and labour costs, this method also includes [...]

It is very clear from the above example that the higher the compounding interval, higher is the wealth accumulated. Also, longer the investment tenure higher is the wealth accumulated. Furthermore, you can change the inputs and try various combinations to estimate the potential returns from your investment. Use Scripbox’s Compound Interest calculator to find how [...]

Reconciling your accounts can help to identify and correct errors, ensuring all transactions end up correctly. The monthly bank reconciliation process should be free of errors and streamlined for maximum efficiency. It involves reviewing each individual transaction to see if the amount captured matches the actual amount spent. Documentation review tends to be more accurate [...]

Severance pay entitlement is 15 days’ wages per year of service, as long as the employee has served at least five years. A foreign national will generally apply for an Indian employment visa to the Indian Embassy/High Commission in his country of residence. Following the receipt outsourced accounting and bookkeeping of a visa, all labor [...]