What Is Leverage Ratio? A leverage ratio is a financial metric used to measure the level of debt a company uses to finance its operations. It is a ratio of the company’s total debt to its assets or equity. The leverage ratio is an important indicator of a company’s financial health, and investors, analysts, and…
Depreciation is a devaluation of an asset over a period of time. Your tangible assets like equipment, vehicles, building, furniture, and machinery are all examples of depreciable assets. If you own an asset used for income-producing activity, it will depreciate as well. According to the IRS, you have to deduct an amount from the asset’s…
It is not easy to manufacture something, and definitely not cheap. There are so many costs that go behind the manufacturing of a product that it becomes very hard to keep track. All of these costs are known as manufacturing overheads. Let’s look in detail at what manufacturing overhead is, its formula, and how to…
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