A financial analyst is a finance professional who guides business and economic decisions. Some financial analysts work at investment banks, facilitating large transactions between corporations, while others track product or service performance and make recommendations to improve profits. What Is a Financial Analyst? In general, a financial analyst analyzes finances, but they use this analysis …
A chartered financial analyst (CFA) is a certification offered by the CFA Institute and a title for those who have earned this certification. Getting a CFA charter requires several exams and can be a difficult process. However, the CFA designation is highly respected in the investing and corporate finance world, making it a lucrative career …
An investment’s internal rate of return (IRR) is how much the investor will make from their investment without accounting for external factors like the economy. In practice, IRR serves as a metric of profitability that allows investors, business owners, and financial analysts to compare investment options. What Is the Internal Rate of Return? The internal …
A cash flow statement is a financial statement that shows how cash entered and exited a company during an accounting period. Cash coming in and out of a business is referred to as cash flows, and accountants use these statements to record, track, and report these transactions. In this guide, we’ll go over: Cash Flow …
A network security engineer is a type of cybersecurity professional tasked with protecting a company’s network and any users or devices connected to the network. These types of security engineers can work in practically any industry since every company with a computer network needs someone to keep that network safe. But what does being a …
AIG, or the American International Group, Inc., is best known as an international insurance company offering policies to individuals, small businesses, and large corporations. As a Fortune 500 company, AIG operates in dozens of countries and employs nearly 50,000 people worldwide. But what is working at AIG really like? In this guide, we’ll go over: …
A contribution margin measures how profitable a product is to produce. A company’s contribution margin shows how much revenue is available after it deducts variable costs like raw materials and transportation expenses. For a product to be profitable, the remaining revenue after variable costs needs to be higher than the company’s fixed costs, like insurance …
A balance sheet is a type of financial statement used in business and finance to give an overview of a company’s assets, liabilities, and shareholder equity at a given point in time. These balance sheets are essential tools for business owners, accountants, and investors because they provide insight into a company’s financial standing and show …
A company’s weighted average cost of capital (WACC) is the amount of money it must pay to finance its operations. WACC is similar to the required rate of return (RRR) because a company’s WACC is how much shareholders and lenders require from the company in exchange for their investment. In this guide, we’ll go over: …
What Is Weighted Average Cost of Capital (WACC)? Read More »
Net working capital (NWC) is also referred to as working capital and is a way to measure a company’s ability to pay off short-term liabilities. NWC is often used by business owners and accountants to quickly check a company’s financial health at any given moment. However, the results are sometimes difficult to interpret. In this …
