EBIT – Earnings before Interest and Taxes

What is Earnings before Interest and Taxes (EBIT)? Earnings before interest and taxes (EBIT) is a financial metric that measures a company’s operational profitability. EBIT is calculated by subtracting a company’s expenses excluding interest and taxes from its total sales or revenues. EBIT gives a significant indication of a company’s operating profitability. Because EBIT is … Read more


LIBOR stands for London InterBank Offered Rate (aka ICE LIBOR) is the benchmark interest rate for interbank short-term unsecured loans. LIBOR is calculated based on submission of interest rates by panel banks (ICE LIBOR Currency Panels), that they expect they would be charged by others for borrowing money. So, LIBOR is an average rate at … Read more

Cashless society


Cashless society is an economic concept where financial transactions are executed in an electronic format rather using banknote. In a cashless society, each party will have an electronic card or device which will be used to execute the transaction. The cashless transaction may be executed in the form of Credit card, Debit card, Mobile wallet, … Read more

Stockholder or Shareholder

[subtitleh2]What is a stockholder or shareholder?[/subtitleh2] A stockholder is an individual, company or any other entity who owns at least one or any number of share of a corporation’s capital stock. Is there any difference between stockholder and shareholder? The answer is NO. Both are same. In the United States, people love to name by … 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

Line of credit

What is Line of credit (LOC)? A line of credit, also known as LOC is generally an unsecured loan. A LOC gives a borrower the right to borrow and draw funds at any time to meet immediate needs. A significant condition of a line of credit is it’s maximum limit. Borrower can take money out … Read more

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

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



Refinance or refinancing is the process of acquiring a new mortgage to pay off the balance of an existing mortgage. Typically the new mortgage comes with better terms and condition. Also called as Refi. Here are some typical scenarios, usually when people consider refinancing: When there is a lower interest rate offer Borrower’s will to … Read more