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Horizontal And Vertical Analysis In Financial Statement Analysis: Concepts, Methods, And Comparison

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  Analysing financial statements is key to assessing the performance of a business. One such analysis is horizontal analysis and vertical analysis. Both methods seek to give an indication of how a business is performing, but from different angles - one over a period of time, and the other in the same period. Knowing how they work can help financial analysts, students and entrepreneurs to better understand financial information and make informed decisions. Horizontal Analysis Explained In Financial Statement Analysis Horizontal analysis is a technique for analysing financial statements over time. This type of analysis is used to look for trends in data like revenue, expenses, profits and so on, across multiple years. This approach can be used to answer questions such as: Is it spending more than it's earning? Horizontal analysis shows how these changes have occurred over time and trends in performance and direction. What Is Vertical Analysis And How It Works In Accounting Vertical ...
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What Is Earnings Before Tax And How It Is Calculated: Explanation, Formulas, And Comparison

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  Earnings Before Tax (EBT) is an important financial indicator, which determines the profitability of the company without taking into consideration the income tax expenses. It is an indication of the profitability of business in terms of the amount that a business makes out of its operations and financing before the deduction of taxes. The significance of EBT is that it enables analysts and investors to make comparisons of companies without the influence of various taxes and regulations. Knowledge of EBT can be used to estimate the fundamental financial performance and efficiency. It is usually used in the income statement and is used to reconcile the operating profit with the net income. Earnings Before Tax Explained In Financial Statements Earnings Before Tax is shown in the income statement immediately preceding the line that shows the tax expense in the financial statements. It is the profit that includes the profit after subtracting the operating expenses, interest expenses ...
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Types Of Due Diligence In Mergers And Acquisitions Explained

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  Due diligence in mergers and acquisitions (M&A) can be defined as the overall procedure of assessing a target company prior to making a deal. It assists the buyers to confirm information, risks and to ensure that the deal is both financially and strategically sound. Due diligence is an important aspect in the modern business environment such as in Jakarta where business companies are seeking to expand, enter into partnership and cross border investments. Due diligence can be categorized into a number of types, each of which concentrates on a particular aspect of the business. They both give a full picture of the company being acquired and aid investors to make well-informed decisions. Different Types Of Due Diligence For Business Transactions Various forms of due diligence of business transactions are made to assess different aspects of a business. The most widespread ones are financial due diligence, legal due diligence, operational due diligence, commercial due diligence a...
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Potential Growth Of Corporate Venture Capital In Modern Businesses: Innovation, Funding, And Strategy

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  Corporate Venture Capital (CVC) is a relatively recent addition to the current business environment, which has gained a significant role. Big businesses no longer depend on only in-house innovation, they are also investing in new businesses to remain competitive, to have entry to new technologies and to cause long-term growth. With the ever changing nature of industries, corporate venture capital is likely to have an even greater influence in the future of business. This paper discusses the evolution of corporate VC, its contribution towards innovation and the process of venture capital financing to startups and entrepreneurs. Potential Growth Of Corporate Venture Capital In Modern Businesses Innovation and agility are the reasons why the corporate venture capital is likely to grow in the contemporary businesses. Firms in any industry; be it the technology sector or the healthcare industry are establishing venture arms to invest in startups. This enables them to venture in new m...
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What Is ESG And What Does ESG Mean In Business: Principles, Investing, And Real World Applications

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  One of the important concepts in modern business and finance is Environmental, Social, and Governance (ESG). In the present day world, businesses are not considered on the grounds of their financial performance only but also their performance in regards to environment management, social responsibility and corporate governance. With the advent of sustainability as a global issue, there is a necessity to acquire knowledge of ESG by both beginners and finance professionals. This paper defines the meaning of ESG, its relevance in business, as well as the mechanism of ESG investing in the actual financial markets. What Is ESG And What Does ESG Mean In Business The three main elements are the beginning of knowing what esg is and what does esg mean in business. Environmental is the manner in which a company handles its effects on the environment such as the energy consumption and carbon emission. Social is about relations with employees, customers and communities. Governance has to do w...
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Basic Accounting Concepts Explained for Beginners in Singapore

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  One of the most vital backgrounds that one would ever need to have in venturing into a business, finance or an entrepreneurship career is accounting. Being an amateur with no prior knowledge or a professional who wants to refresh his knowledge, it is crucial to learn essential concepts of accounting. In Singapore, organized courses like diploma courses or online training are among the options that most learners prefer in order to develop robust accounting skills. This paper examines the diploma programs in Singapore, basic accounting courses and the major concepts that must be known by every student. Basic Accounting Concepts Explained For Beginners The basic accounting concepts as explained to beginners could begin with the fundamentals which underlie accounting. These are the accounting equation (Assets = Liabilities + Equity) which is a financial position of a business. The other important concepts are revenue recognition, matching principle and accrual accounting. These prin...
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