Objectives of financial management

Financial management can seem like a daunting task, but with the right tools and strategies, it can be made much easier. In this article, we’ll discuss some of the objectives of financial management and how you can achieve them using different types of financial tools. Types of financial management objectives The objectives of financial management … Read more

Debt to Asset Ratio Formula and Calculation

The debt to asset ratio formula shows the relationship between total debt to total assets of a firm. The debt ratio gives the percentage of assets financed by debt; this financial metric helps to determine the percentage of assets that are financed by debt which in turn helps one to determine the financial leverage of … Read more

Mercantilism vs capitalism differences and similarities

What are the differences between mercantilism vs capitalism? Mercantilism and capitalism are two economic systems practiced by nations throughout history. Though they share some similarities, there are also several essential ways in which they differ. So, what’s the difference between capitalism and mercantilism? Mercantilism was an early form of capitalism that emerged in the 16th … Read more

What is mercantilism? examples and theory

Mercantilism was controversial because it promoted government intervention in the economy. Critics of mercantilism argued that it caused economic hardship for consumers and businesses and was not necessary for long-term prosperity. Mercantilism has been replaced by free market economics as the dominant economic theory in most developed nations. However, some countries, such as China, continue … Read more

What are large cap stocks? list and examples

Below are the large cap stocks list and examples of companies that issue them. Some examples of these companies that issue large-cap stocks are Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Alphabet (GOOGL), and Facebook (FB). In times of market adversity, such as a recession or other bad news, large-cap stocks are known to be the … Read more

Outstanding Shares Formula and Calculation

The outstanding shares formula is represented as issued shares minus shares held in the company’s treasury or treasury stock. Through this formula, one can determine the outstanding shares of a company. Analysts use the number of outstanding shares in calculating key metrics such as a company’s market capitalization, earnings per share (EPS), and cash flow … Read more

Quick ratio formula, calculation and examples

The quick ratio formula is among the most aggressive liquidity ratios in determining the short-term liquidity capabilities of companies. This quick ratio calculation is a more conservative assessment of the liquidity status of firms, though it is similar to the current ratio. But unlike the current ratio, the quick ratio excludes inventory as it doesn’t … Read more

Penny stocks features and examples

Penny stocks features are characteristics that differentiate penny stocks from other common stocks. Before now, they were viewed as cheap investment opportunities that offered the most profits, thus the term was commonly used to refer to stocks that traded for pennies on the dollar, meaning that for every dollar invested, you get pennies in profit … Read more