The yield on earning assets is a measure of the profitability of a company’s core business activities. It is calculated by dividing the company’s net income from operations by its total earning assets. The yield on earning assets is a useful metric for assessing the profitability of a company’s core business activities. What are the … Read more
The sampling definition is the set of guidelines that a researcher uses to define the population from which a sample will be drawn. The population is the set of all individuals, objects, or events that the researcher wants to study. The sample is the set of individuals, objects, or events that the researcher actually observes. … Read more
. Price Elasticity of Demand: Meaning, Types, and Factors What are the two types of income elasticity? Income elasticity of demand is a measure of how demand for a good or service changes in response to a change in consumers’ incomes. There are two types of income elasticity of demand: 1. Positive income elasticity of … Read more
The down-market capture ratio is a ratio that measures how well an investment performs compared to its benchmark during periods when the market is declining. The down-market capture ratio is calculated by dividing the investment’s return by the benchmark’s return during periods when the market is down. For example, if an investment has a down-market … Read more
The cash asset ratio is a measure of a company’s liquidity, or its ability to pay its short-term obligations. It is calculated by dividing a company’s cash and cash equivalents by its total assets. The cash asset ratio is a important tool for financial analysts and investors, as it can give them a quick snapshot … Read more
The debt ratio is a financial ratio that measures the extent of a company’s leverage. The debt ratio is calculated by dividing a company’s total liabilities by its total assets. A high debt ratio indicates that a company is highly leveraged and may be at risk of defaulting on its debt obligations. A low debt … Read more
. What Is Goodwill (Accounting)? How Does Goodwill (Accounting) Work? How To Calculate Goodwill (Accounting) What is goodwill in accounting formula? Goodwill in accounting is an intangible asset that represents the value of a company’s reputation and customer base. The goodwill account is a balance sheet account that is used to record the value of … Read more
The appraisal ratio definition is the percentage of a property’s appraised value that its owner actually owes on the mortgage. For example, if a property is appraised at $100,000 and the owner owes $80,000 on the mortgage, the appraisal ratio is 80%. Appraisal ratios are used by lenders to determine whether a borrower has enough … Read more
The Roy’s safety-first criterion (SFRatio) is a risk management tool that can be used to determine the optimal level of investment in a portfolio. The SFRatio is calculated by dividing the expected return of the portfolio by the standard deviation of the portfolio. The higher the SFRatio, the more risk-averse the investor is. The Roy’s … Read more
The Texas Ratio is a financial ratio used to evaluate the health of a financial institution. It is calculated by dividing the total non-performing assets (NPA) by the total capital plus the allowance for loan and lease losses (ALLL). A ratio of less than 1.0 is generally considered healthy, while a ratio greater than 1.0 … Read more
