Business Advice

EBITDA—Earnings Before Interest, Taxes, Depreciation, and Amortisation—is a financial metric used to evaluate a company’s operating performance by stripping out costs that don’t relate to core business activity. It helps investors, lenders, and managers understand how well the business generates profit from its operations alone. 📌 How to Calculate EBITDA There are two common methods, both leading to the same result: Using Net Profit: EBITDA=Net Profit+Interest+Taxes+Deprecia

A balance sheet is a financial statement that shows what a company owns, what it owes, and the value that belongs to its shareholders at a specific point in time. Its key components fall into three major categories: assets, liabilities, and equity. Together, they follow the fundamental accounting equation: Assets = Liabilities + Equity. 🧾 Assets Assets represent everything the company owns or controls that has economic value. They are usually divided into two groups: Current

Assessing a company’s financial health means evaluating whether it can survive, grow, and meet its obligations without running into cash‑flow trouble. The strongest assessments combine profitability, liquidity, efficiency, leverage, and forward‑looking indicators to create a full picture of stability and risk. Profitability Profitability shows whether the company is generating real economic value. Key measures include net profit margin, return on assets, and return on equity.

A Key Performance Indicator (KPI) is a measurable value that shows how effectively an organisation is achieving its most important objectives. Strong KPIs turn broad ambitions into clear, trackable signals that guide decisions, highlight progress, and reveal problems early enough to fix them. KPIs work best when they are tightly linked to strategic goals. For example, if your priority is improving customer satisfaction, a KPI might track your customer retention rate or averag