What Is the Average Collection Period? The average collection period (ACP) is the amount of time it takes for a business to receive outstanding payments. These are payments owed by its clients for goods or services in terms of accounts receivable (AR). Companies calculate the average collection period to make […]
Monthly Archives: November 2020
11 posts
What Is the Sustainable Growth Rate (SGR)? The sustainable growth rate (SGR) is the maximum rate of growth that a company can sustain without having to issue additional equity or take on new debt. The SGR involves maximizing sales and revenue growth without increasing financial leverage. Achieving the SGR can help […]
What is Corporate Development? Corporate Development is the internal focus of a corporation to generate and weigh strategic decisions to grow and restructure the business. Often this development is through establishing strategic partnerships, mergers, acquisitions, and joint ventures. The purpose is to create opportunities for the company through actions and […]
What is the Equity Multiplier The equity multiplier is a financial leverage ratio. It measures a firm’s assets that are financed by its shareholders. It does this by comparing total assets with total shareholder’s equity. In other words, the equity multiplier shows the percentage of assets that are financed or owed […]
What is ACH Withdrawal? An ACH withdrawal is when funds are electronically pulled directly from a checking or savings account. It can be for the purpose of making bill payments or purchases. ACH Debit happens when the payee requests to draw funds from the payer’s account via the ACH network. […]