What is an Initial Public Offering (IPO)? An initial public offering (IPO) is a process that companies use to offer their shares to the public. These companies are private entities that want to go public with new stock issuance. Issuing shares to the public allows companies to raise funds from …

What are Liquidity Ratios? Liquidity ratios are crucial financial metrics that help measure a company’s ability to pay off its short-term obligations using its current assets. The capacity of a company to stay liquid in the long-term is vital for its long-term success. Therefore, liquidity ratios help users measure if …

At the end of each year, companies or businesses must report their activities to their stakeholders. They achieve that through financial reports, also known as financial statements. What is a Financial Report? A financial report, or a financial statement, represents formal records of an entity’s activities. Usually, financial reports represent …

What is Hypothesis Testing? Hypothesis testing is a concept in statistics in which analysts test an assumption regarding a population parameter. It is a method used in statistical inference. The use of hypothesis testing is useful when determining if a statement regarding a population parameter is statistically significant. Overall, it …

Financial statements are written records of a company that gives information about its activities and performance. Almost all companies around the world prepare financial statements. Usually, the laws and accounting standards that a company operates in requires it to prepare financial statements. However, some companies may also voluntarily prepare financial …