Potential investors in a company look at the EPS as an indicator of the company’s profitability and compare this metric with the EPS of other companies before making an investment… Read More... "Earnings Per Share EPS Formula + Calculator"
What is Net Working Capital NWC: Meaning, Formula, Example & Ratio
The net working capital (NWC) formula subtracts operating current assets by operating current liabilities. In other words, a company’s ability to meet short-term financial obligations. It’s a calculation that measures… Read More... "What is Net Working Capital NWC: Meaning, Formula, Example & Ratio"
Period Costs vs Product Costs: What’s the Difference?
Direct labor that is tied to production can be considered a product cost. However, other labor, such as secretarial or janitorial staff, would instead be period costs. Both product costs… Read More... "Period Costs vs Product Costs: What’s the Difference?"
Gross Profit Margin Formula, Example, and Interpretation
Conversely, Monica can also view the $650,000 as the amount of money that can be put toward other business expenses or expansion into new markets. This means that for every… Read More... "Gross Profit Margin Formula, Example, and Interpretation"