Understanding Sensitivity analysis

Suppose you expect a new product line to start generating a certain amount of annual profit a year from now. What if some variable in the scenario changed? How would that affect your overall evaluation of the investment opportunity? Sensitivity… Read More ›

Understanding Operating ratios

Operating ratios, like profitability ratios, link various income statement and balance sheet figures. In addition, they help you assess an organization’s operating efficiency—everything from how efficiently it uses its assets to how solvent it is. The table below describes some… Read More ›

Understanding Profitability ratios

Profitability ratios give the avenue to evaluate a company’s level of profitability by expressing sales and profits as a percentage of various other items. Here are the most basic profitability ratios: There are many other ratios in addition to those… Read More ›

Ratio analysis

By themselves, financial statements tell you quite a bit. But how do you interpret all the numbers these statements provide? For example, is your company’s profit large or small? Is the level of debt healthy or not? Ratio analysis helps you dig deeper… Read More ›

Three financial statements

These three financial statement offers three different perspectives on the organization’s financial performance: Income statement. This statement shows “the bottom line.” It indicates how much profit or loss your organization generates over a period of time (could be a month, a quarter,… Read More ›

Accounting methods

Before you can understand the financial statements your organization uses, you need to understand the accounting methods companies use. But this and other aspects of financial intelligence are hard to talk about without examples and data. There are two accounting… Read More ›

Note on Metric Tonnes & Long Tonnes Conversion

From Kiloliters to Metric Tonnes. Metric Tonnes = Volume in Kiloliters * (density – 0.0011) Weight in air factor = density – 0.0011 From Kiloliters to Long Tonnes. Long Tonnes = Volume in Kiloliters * (V.C.F. from ASTM D1250 T57)