Category: CORPORATE FINANCE

Cost Allocation: Definition, Methods, Plan, Importance

Companies incur various costs when producing their products or services. Companies must assign these costs to those items to calculate profits from them. However, this process may not be as straightforward. Sometimes, companies must also allocate common costs to various objects to establish the cost incurred on those items. For …

Leverage Ratios: Definition, Types, Examples, Importance

Ratios are used by analysts to measure a company’s financial performance and health. There are many different types of ratios, but the most common is debt to asset, debt to equity, and debt to capital. These ratios give investors an idea of how much leverage a company is using, and …

The Best Business Credit Cards with No Annual Fee

If you’re looking for the best business credit cards with no annual fee, look no further. We’ve compiled a list of the top cards that don’t charge an annual fee, so you can save money and focus on your business. These cards offer great rewards and benefits, so you can …

How to Calculate Credit Risk: An Overview

Do you need to calculate credit risk for a business loan or line of credit? Are you curious about what goes into this calculation? In this step-by-step guide, we will teach you how to do just that! We will cover everything from the basics of credit scoring to more complex …

What is Counterparty Credit Risk?

Counterparty credit risk is a type of risk that arises when one party to a financial contract fails to meet its contractual obligations. This can happen when the other party to the contract is unable to repay its debt, or when it becomes insolvent. In order to protect themselves from …

Credit Risk Officer: Who They Are and What They Do

Do you know what a credit risk officer is? If not, don’t worry. A credit risk officer is a relatively unknown profession, but they play an important role in the financial sector. This article will explain who credit risk officers are and what they do. Who is a credit risk …

What is Credit Risk Mitigation, Credit Risk Management

If you’re a business owner, then you know that credit risk mitigation is essential to your success. But what is it, exactly? Credit risk mitigation is the process of reducing or eliminating the potential risks associated with extending credit to customers. By implementing sound risk management practices, you can protect …

Debt Beta: Definition, Formula, Calculation, vs Equity Beta

What is Beta? Beta is a term used to quantify the systematic risk of a security or investment portfolio. It calculates that risk relative to the market. Since systematic risk is a type of uncertainty revolving around a market, it can be critical to some investments. Beta quantifies the correlation …