A lower ratio (below 1, for instance) suggests the company is using more equity than debt to finance its operations, indicating lower risk and greater financial stability. A high debt-to-equity ratio suggests that a company relies heavily on debt financing and may have higher financial risk.
That’s why it is vital to keep a tab on metrics such as conversion cost. It can help you have these crucial discussions at the right juncture, and it also keeps your marketing teams on their toes. Moreover, it can help you turn your struggling campaigns into profitable ones. For instance, depreciation and electricity bills […]
Accrued expense is the expense that has already incurred during the period but has not been paid for yet. The accrued expenses may include interest expense, salaries and wages, and utility expenses, etc. Likewise, at the period end adjusting entry, the company needs to account for all the accrued expenses with appropriate journal entries. In […]
For example, interest expense that a hospital pays on a debt obligation is not reflected as an interest expense on the income statement; it must be capitalized as a construction cost incurred during the construction period. A way to combat this is to implement a revenue cycle tool that can track billing, payments received, allowances, […]