Category Archives: Ratios

Understanding Breakeven Analysis

Breakeven analysis is extremely important for appropriately assessing financial stability. Break even analysis provides management with the answer every owner wants to know: how much do we need to sell in order to stay in business? This invaluable analysis can ...
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Lifetime Value of a Customer, Part 1

All businesses on some level require the same evaluation. There must be a developed interest in their goods or service through business development activities, fulfill on sales that result from the business development activities, and administrate the underlying and resulting ...
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Installment Sales: Why Do We Use Them?

Why do we use installment sales? Installment sales are only used for financial reporting when there is no reasonable basis for estimating the degree of collection ability. Revenue recognition occurs when cash is actually collected, rather than at the point ...
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