How to Find Marginal Revenue
According to basic economic principles, if a company lowers the price of its products, then that company can sell more products. However, this will generate less profit for each additional…

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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…

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What is net cash flow
Net cash flow is an economic indicator of the solvency and financial well-being of the organization. The result of the calculation gives management, creditors and investors a clear understanding of…

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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.…

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employees

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

Margin Analysis

Let’s imagine that confectioner Vasya Yagodkin sells one hundred cakes with raspberries and one hundred with currants every month. Crimson ones bring him 50,000 rubles, and currant ones – only 30,000 rubles. It seems that it is more profitable to score on currants and sell only raspberry cakes. The idea is ok, but there are a few things to consider first.

Before getting rid of currant cakes, we consider how much money Yagodkin spends on production, and we see: 40,000 rubles are spent on raspberry cakes, and 10,000 rubles on currant ones. Continue reading

Business financial health

It happens that a company looks successful, healthy and rich: every month it opens a new branch, hires its second thousand employees and does not leave the front page of Forbes. But then – once, and bankruptcy. This happens when the owner looks only at the scale of the company or turnover, and these are not indicators that really reflect the financial health of the business. About those – in the article.

0. Profitability
Before we get into the metrics, let’s look at the types of profitability. Continue reading

How to attract a sponsor
The process of obtaining sponsorship for your business, project or event can end in a successful and mutually beneficial cooperation, or a complete failure. However, you can significantly increase your…

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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 collect basic reports. Thus, we digitize the company. And thanks to this digitization, it is…

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How to conduct business process analysis
A business process is a system that a company uses to achieve a goal. Also, this term can be defined as a sequence of actions that allows you to create…

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