Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He currently researches and teaches economic sociology and the social studies effective tax rate definition of finance at the Hebrew University in Jerusalem. One limitation of book value per share is that, in and of itself, it doesn't tell you much as an investor. Investors must compare the BVPS to the market price of the stock to begin to analyze how it impacts them. Top Intraday…

Customers rate us highly for value for money, ease of use, and customer service. However, there tends to be considerably less than on dedicated review websites. These sites are good at showing the key features, pros and cons, and alternative software suggestions. For most businesses, objectives for Xero integrations will be to make life easier. This method eliminates the need for manual data entry, minimizing the likelihood of errors and ensuring accurate inventory records. By leveraging the import feature, businesses can easily synchronize their inventory data from external sources, reducing duplication of effort. It also provides a comprehensive overview of inventory levels, making it easier to analyze stock movements and identify trends. The efficient import process enhances inventory management, leading to better…

The Least Square method provides a concise representation of the relationship between variables which can further help the analysts to make more accurate predictions. The Least Square method assumes that the data is evenly distributed and doesn’t contain any outliers for deriving a line of best fit. But, this method doesn’t provide accurate results for unevenly distributed data or for data containing outliers. Let us have a look at how the data points and the line of best fit obtained from the Least Square method look when plotted on a graph. The primary disadvantage of the least square method lies in the data used. One of the main benefits of using this method is that it is easy to apply and understand.…

Here, the company could withstand a liquidity shortfall if providers of debt financing see the core operations are intact and still capable of generating consistent cash flows at high margins. The Current Ratio is a measure of a company’s near-term liquidity position, or more specifically, the short-term obligations coming due within one year. Public companies don't report their current ratio, though all the information needed to calculate the ratio is contained in the company's financial statements. Even from the point of view of creditors, a high current ratio is not necessarily a safeguard against non-payment of debts. By contrast, in the case of Company Y, 75% of the current assets are made up of these two liquid resources. While determining a company’s…

This equation holds true for all business activities and transactions. If assets increase, either liabilities or owner’s equity must increase to balance out the equation. This straightforward relationship between assets, liabilities, and equity is considered to be the foundation of the double-entry accounting system. The accounting equation ensures that the balance sheet remains balanced. That is, each entry made on the debit side has a corresponding entry (or coverage) on the credit side. The basic concept of accounting equation is to express two main points in the accounting rule. If a transaction is completely omitted from the accounting books, it will not unbalance the accounting equation. Let’s take a look at the formation of a company to illustrate how the accounting equation…