Working capital is the company’s ability to pay current liabilities with current assets . Working capital is an important measure of financial health because creditors can measure a company’s ability to pay off its debts within a year. Working capital represents the difference between a company’s current assets and current liabilities. The challenge is to…… Continue reading How to Calculate Working Capital?
Category: Economics
What is Gross Profit Margin (GPM)?
Gross Profit Margin is a metric that analysts use to assess a company’s financial health by calculating the amount of money left over from product sales after reducing the cost of goods sold (COGS) . Sometimes gross profit margin is referred to as gross margin ratio, gross profit margin is often expressed as a percentage of…… Continue reading What is Gross Profit Margin (GPM)?
The Concept of Demand and Supply in Economics
What is the Law of Supply and Demand? The law of supply and demand is a theory that explains the interaction between a seller of a resource and a buyer of that resource. This theory explains the interaction between the existence or availability of a product and the demand for that product on the price…… Continue reading The Concept of Demand and Supply in Economics
From Mudharabah to Ijarah, Get to Know the Principles of Islamic Banking
Islamic banks are banks that carry out their activities based on Islamic law (Islamic principles). This bank is also called an interest-free bank. Why not, in raising funds this bank does not provide interest in return and in loans are not subject to interest. In carrying out its activities, this bank is based on Islamic religious principles…… Continue reading From Mudharabah to Ijarah, Get to Know the Principles of Islamic Banking