In this article we will discuss about:- 1. Meaning of VBM 2. Methods of VBM 3. Benefits and Limitations. Meaning of VBM: VBM is the management approach that ensures corporations are run consistently on value, normally maximizing shareholders value. VBM aims to provide consistency of the firm's strategy, mission, governance, culture, communication, organization of the corporation, decision processes, reward processes [...]
In this article we will discuss about interest cover and income gearing in a company. Interest Cover: This ratio is calculated to analyse the company's ability to meet interest obligations. It is expressed as number of times interest earned. It is measured as a ratio of profit before interest and tax to interest charges. The more the number of times [...]
There are four methods for estimating the working capital requirements of a firm. The methods are: 1. Percentage of Sales Method 2. Regression Analysis Method 3. Operating Cycle Method 4. Individual Components Method. 1. Percentage of Sales Method: It is a traditional and simple method of determining the level of working capital and its components. In this method, working capital [...]