EBIT margin

The EBIT margin is a financial ratio that measures the profitability of a company calculated without taking into account the effect of interest and taxes. It is calculated by dividing EBIT (earnings before interest and taxes) by sales or net income. EBIT margin is also known as operating margin. It is characterized by reflecting the … Read more

Prototype

prototype

Prototype means ‘Primitive form’ or ‘First impression’. Prototype is the very first or primary real-world version of a concept or an idea. It represents the real form of final product in part or full. Prototype is made to experiment with the viability of a concept in real world. There might be a great idea in … Read more

Turnkey contract

Turnkey Contract

Turnkey contract is typically a construction contract under which a contractor is employed to plan, design and build a project or an infrastructure and do any other necessary development to make it functional or ‘ready to use’ at an agreed price and by a fixed date. In trunkey contracts, most of the time employer provides … Read more

Balance of Trade

Balance of trade is the difference between the value of exports and imports of goods and/or services of a country in a specific period. As it measures the difference between exports and imports, it is also referred to as trade balance. Balance of trade is a significant element of national accounting that identifies exports and … Read more

EPC Contract

EPC stands for ‘Engineering, Procurement and Construction’. EPC contract is a type of construction contract between parties where the contractor is responsible for all the engineering, procurement, and construction activities to deliver the completed project to the employer or owner. Role of an EPC contractor The EPC contractor is responsible for: Detail engineering or design … Read more

Spot zoning

Spot zoning is one kind of zoning variance. It is the process of singling out a plot of land or building within a larger zoned area for a different type of use. For example, a commercial building, park, or school might be granted within a strictly residential area, as surrounding residents may benefit from it. … Read more

Financial Statement

Financial statements are a set of four most significant reports of a business corporation or an organization. It tells about the overall health of a business in terms of finance. A standard set of Financial statements include: Balance Sheet or Statement of Financial Position Income statement or Statement of Income Cash Flow statement or Statement … Read more

Earnings Per Share – EPS

Earnings per share (EPS) is the part of a company’s net profit obtained by each outstanding share of common stock. Earnings per share is a financial metric, that indicates the profitability of a company. Earnings Per Share Formula: We can calculate EPS by using the formula below: The number of outstanding shares of a company … Read more

Energy Efficiency

Energy Efficiency is getting the same job done, but by consuming less energy. In another perspective, energy efficiency is reducing or if possible eliminating the amount of energy waste from any system without degrading quality and performance. So, you might tell, energy efficiency is just “saving energy”. Energy efficiency can be implemented by practicing better … Read more

Balance Sheet

Balance sheet is one of the four major financial statements of a company or entity. Balance sheet portraits an entity’s economic and financial status on a given date. It’s a summary of entity’s assets, liabilities and equity on a certain date. It’s like a photograph of an organization’s financial health taken on a specific time. … Read more