How to create a business from scratch?
Therefore, it is not surprising that this idea seems like a promising undertaking for every…

Continue reading →

How to analyze the ratio of debt to equity
The debt-to-equity ratio is a financial measure used to assess a company's capital structure, more…

Continue reading →

What is a debit and credit balance
“Debit and credit” is perhaps the most famous accounting phrase that even those who are…

...

How to create a trust fund
A trust fund is commonly seen as a way to raise money for the children…

Continue reading →

dietary supplements

How to Calculate the Share of Income Paid as Dividends

The share of income paid in the form of dividends is a way of measuring the share of a company’s profits that is paid out to investors in the form of dividends over a set period (usually within a year), and does not go to the development of the company. In general, old and established companies have higher dividend ratios – their earnings levels have already risen significantly, while companies with lower dividend ratios are young companies with rapidly growing potential. To calculate the proportion of a company’s earnings paid out in dividends over a given period, use either Dividends Paid/Net Income or Annual Dividends Per Share/Net Earnings Per Share, which are equivalent. Continue reading

Operating lever

Typically, business owners are interested in two interrelated indicators: revenue and profit. Revenue shows how much the company has earned, and profit shows how much is left after deducting expenses.

Most likely, if the revenue is higher, then the profit will be higher. The opposite also works: if revenue falls, then the same will happen with profit. And everything would be very simple if there was a direct relationship between the indicators. But no: revenue can sink quite a bit, and this will lead to big losses. Continue reading

Why does a business need a fast payment system

What is a fast payment system
This is an instant transfer service from the Bank of Russia. The recipient for the transfer provides some kind of identifier. Most often it is a phone number. SBP works only between banks that have connected to the service. The list of banks can be viewed on the website of the service.

In short, SBP allows you to transfer money quickly and without commission between different banks. But this requires that the participants of the translation be connected to the service. The system works between all major Russian banks. Continue reading

How to create a trust fund
A trust fund is commonly seen as a way to raise money for the children…

...

Choosing a bank for business
The choice of a bank for business in Russia is one of the key problems…

...

8 reasons why a business is losing money out of the blue
When we start working with financial accounting in companies, the first thing we do is…

...