- Liquidity. The firm’s ability to meet its short-term financial obligations.
- Solvency. The extent to which the firm is able to pay interest and repay long-term loans as and when they are due.
- Financial leverage. The extent to which the firm is employing long-term debt and what is the degree of financial risk of the firm?
- Gross profit. The amount of profit left over from revenues after accounting for the cost of goods sold.
- Operating profit (EBIT). The amount of profit that a firm is able to generate after paying its office and selling expenses.
- Financial management. It is the process of procurement and allocation of funds and distribution of profits among shareholders.
- Capex. The investment in fixed assets is called as capital expenditure. ...
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