Understanding the Benefit-Cost Ratio (BCR)

When it comes to making an informed investment decision, one way is to use the benefit-cost ratio (BCR). Benefit-Cost Ratio Defined The BCR calculates how profitable a project’s (or an asset’s) cash flows are via a present value cash flow … Continue reading →

The Customer Acquisition Cost (CAC) measures how much a company spends to obtain new, additional customers. Oftentimes, this calculation is used with the customer lifetime value (LTV) metric, that also projects the customer’s profitability to calculate the newly acquired customer’s … Continue reading →

Companies that have assets on their balance sheet, but the values of those assets aren’t accurately reflected, are considered to have hidden value. As part of an investor’s fundamental analysis of a potential investment, it looks at a company’s financial … Continue reading →

Also known as a Senior Note, Senior Debt consists of a company’s outstanding loans collateralized by the business’ assets. As the name implies, Senior Debt holders are the first claimants of the business’ cash flows and/or liquidated assets if that … Continue reading →

When it comes it understanding a net charge-off (NCO), it’s the difference between any recovery of delinquent debt and gross charge-offs a business sees in a defined accounting time frame. NCOs are debts a company projects with a low likelihood … Continue reading →

According to the May 2019 Financial Stability Report from the Board of Governors of the Federal Reserve System, there was more than $15 billion in outstanding commercial credit. While there are many ways companies can obtain funding, additional paid-in-capital (APIC) … Continue reading →

When it comes to business needs, securing financing is a top priority, particularly when starting out or for ongoing needs such as making payroll or paying for inventory. This financing could include a loan or securing an ongoing credit line, … Continue reading →