Debt Service Coverage Ratio (DSCR): Definition, Formula and Examples The debt service coverage ratio, commonly abbreviated as DSCR, is a financial ratio that measures an entity's ability to service (pay) its current debt obligations using its operating income. In essence, it indicates how well a company or individual can cover their debt payments
Retained Earnings: Definition, Formula and Examples Retained earnings represent a crucial component of a company's financial health and strategic planning. This comprehensive guide explores the concept of retained earnings, its calculation, significance, and impact on business finances. Understanding retained earnings is essential for financial professionals, investors, and business managers alike in interpreting financial health.
Return on Investment (ROI): Definition, Formula and Examples Return on Investment (ROI) is a fundamental financial metric that plays a crucial role in business decision-making and investment analysis. Whether you're a financial professional, business owner, or investor, understanding ROI is essential for evaluating the profitability and efficiency of investments. This comprehensive guide will explore
Income Statement: Definition, Formula and Examples In the world of financial accounting and business analysis, the income statement stands as one of the most crucial financial statements that analysts, investors and businesses themselves use to evaluate the financial performance of a company over a specific time period. This fundamental document, also known as
Risk-free Rate (RF): Formula, Analysis and Examples In the realm of finance, the risk-free rate plays a pivotal role in various theoretical models and practical applications. It serves as a foundational concept, influencing numerous financial decisions and calculations. This article delves into the intricacies of the risk-free rate, its formula, analysis, and examples, providing
Career Paths in Finance The finance industry is a vast and multifaceted landscape, offering a diverse array of career opportunities for those with a passion for numbers, analysis, and strategic decision-making. From the fast-paced world of investment banking to the meticulous realm of financial accounting and analysis, the finance sector caters to a
Guide to Lookup Functions in Excel In the world of finance, “Cash is King”… but remember that data is Emperor! The ability to process and sort mass data, picking out required information can be a burden. From analysis expenses and revenues to market trends, financial professionals rely heavily on spreadsheets but often do
Understanding Excel If Statements Professionals in finance often have to deal with large datasets, complex calculations, and the need to extract meaningful insights quickly. This is where Excel's powerful IF function comes into play, allowing users to perform conditional analyses and automate decision-making processes. By understanding and leveraging the full potential of IF
Basic Excel Formulas for Finance Professionals In the fast-paced world of finance, data is king. From tracking stock prices and analysing market trends to managing budgets and forecasting cash flows, finance professionals rely heavily on accurate and up-to-date data. Microsoft Excel has long been the go-to tool for crunching numbers and performing advanced
Portfolio Optimisation in Excel If you would like a copy of the Excel spreadsheet containing the data and analysis below, feel free to contact Greg: Greg.m@capitalcitytraining.com It was in the summer that I blogged about my diversified portfolio – noting how my ‘random weighting’ might be as good as anything scientifically optimised, given that
