Category Archives: Bookkeeping

What Is the Debt-To-Equity Ratio and How Is It Calculated?

The debt to equity ratio measures the riskiness of a company’s financial structure by comparing its total debt to its total equity. The ratio reveals the relative proportions of debt and equity financing that a business employs. It is closely monitored by lenders and creditors, since it can provide early warning that an organization is […]

What is Inventory Carrying Cost & How to Calculate it?

Inventory carrying cost depends on inventory turnover rate, number, and variety of SKUs present in the stock and whether you fulfill your orders or hire someone else for it. When you have items in ongoing production, the intermediate works in progress need to be stored. For example, if you manufacture cars, you would individually ready […]