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Internal Rate of Return (IRR) – Calculation with Examples

The Internal Rate of Return (IRR) is one of the most widely used methods for capital appraisal purposes and there is no doubt that it’s also considered as one of the most robust ...
Discounted Payback Period Method

Discounted Payback Period Method – Calculation with Examples

The discounted payback period method is exactly the same as that simple payback period method (which was explained in a different  post) apart from one thing. The discounted payback ...
Payback Period

PayBack Period as a Capital Appraisal Method

Payback Period is one of the capital appraisal methods that can be used to understand whether a project is worthwhile. The question that the Payback Period answers is how long it will ...
Gearing Ratio

Gearing Ratio Formula, Calculation and Analysis with Examples

The Gearing Ratio is one of the fundamental ratios that are used everyday by financial analysts, banks and investors to understand the capital structure of a company. The financial ...
Operating Lease VS Finance Lease

Operating lease vs Finance lease – A Comparison

The accounting treatment of an operating lease versus a finance lease is an interesting topic since more and more companies choose to lease their equipment instead of buying it nowadays. ...

Accrual Concept of Accounting – Definition and Examples

The accrual concept of accounting is a requirement for the three most widely used accounting frameworks, IFRS, US and UK GAAP. So what does that mean? Accrual Concept of Accounting ...

Quick Ratio (Acid Test Ratio) Calculator and Analysis

Another financial ratio that is commonly used to understand how liquid a company is is the quick ratio or as it’s often called the acid test ratio.  The difference between the ...
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