When it comes to the world of business, risks are as common as opportunities. Among them, operating risk stands as a hidden giant, as it influences the course of a business’s journey. It’s a term that is commonly used in corporate conversations, which shows potential pitfalls and prospects. Understanding this …

Intangible assets are non-physical assets with no tangible form that hold value for a company. Like other assets, these can be economic inflows to a company. One item that falls under this category is patents. What is a Patent? A patent is a legal right granted by a government to …

Navigating the world of finance can be complex work. Among various financial concepts, one stands out as vital to any business – Cash Management, often referred to as Treasury Management. From managing a company’s cash flow to optimizing short-term investments, and mitigating financial risks, Cash Management is a crucial aspect …

Deferred tax, in accounting, represents the temporary difference between a company’s taxable income and its accounting income. Sometimes, companies might need to recognize a valuation allowance for deferred tax assets. Before discussing it, it is crucial to understand what deferred asset means. What is a Deferred Tax Asset? A deferred …

When it comes to gambling and betting companies, one of the most widely used metrics to measure their success is Gross Gaming Revenue (GGR). It represents the value of all bets placed by customers, minus the winnings paid out to them. GGR is an important indicator of a company’s financial …

An asset’s lifecycle refers to its entire existence, from acquisition to disposal or retirement. It encompasses stages such as procurement, operation, maintenance, and ultimately, the end of an asset’s useful life, with each phase incurring distinct costs and management considerations. Companies can use life cycle costing to determine these costs. …

When it comes to finance, it’s important to get familiar with different metrics and terms. One such term is EBITA – a popular financial indicator used by investors, analysts, and businesses alike. It provides a snapshot of a company’s operational performance, excluding certain financial and tax considerations. A thorough understanding …

Companies bear various risks associated with inventory. One of these includes the difference between the book and the actual value of stock. This occurrence falls under inventory shrinkage. What is Inventory Shrinkage? Inventory shrinkage, often termed “shrink,” encompasses the unaccounted loss or reduction in a company’s inventory levels. This loss …

Understanding financial terms is crucial in the business world. One such term, Selling, General & Administrative (SG&A) Expense, is often encountered in financial reports. This term may sound complex but it’s an integral part of a company’s operations. It encompasses a wide range of costs, all of which play a …

Quality, for companies, means consistently delivering products or services that meet or exceed customer expectations and conform to established standards. It’s important because high quality enhances customer satisfaction, builds brand reputation, fosters loyalty, and often translates into a competitive edge. Companies must track quality costs to ensure these features. What …