Net working capital is positive if short-term assets exceed liabilities. Yearly net working capital change occurs from balance sheet variations. A significant increase in accounts payable can reduce ...

Capital gains tax, which applies to many investment transactions, is an important component of the investment landscape, affecting millions of investors. From stocks and bonds to real estate and ...

Learn how to evaluate free cash flow to gauge a company's financial health and recognize accounting tricks. Understand FCF's role in investment decisions today.

Understanding capital gains tax is essential for savvy investors. If you're aiming to maximize your returns, you need to know when you'll encounter capital gains taxes and how to deal with them. In ...

The core purpose of a business valuation is to establish an unbiased and justifiable estimate of the economic value of a business entity. Here’s why it is important: Transparency: It provides clarity ...

To run a company successfully, you need to know everything about your business, including its financials. One of the most critical financial metrics to grasp is the contribution margin, which can help ...

This is the second in a four-part series on how companies use cash and how their decisions may impact investors. To see part 1, on mergers and acquisitions, click here. When someone decides to invest ...

Companies may lease assets to optimize financial terms and manage balance sheets. Capital lease interest can be computed using the IRR function in a spreadsheet. Adjust IRR formula for payment ...

Savvy investors look at a company's financial health before buying its stock. Some investors monitor a company's free cash flow and review its cash flow statements to gauge how well it manages its ...

Annuities provide periodic payments for an agreed-upon period of time, either now or in the future, for the annuitant or beneficiary. You can annuitize the annuity by making monthly, semiannual, or ...

After years of paying into the Social Security system, many seniors are surprised to learn that the benefits they receive after retirement may be subject to federal income tax. This is generally ...