Building a capital structure that adds value to your company’s operating performance is challenging because of the large number of judgments that must be made based on intangible
In reviewing your company’s strategic and financial situation, it is useful to identify the “Capital position” in which the company is operating. This is particularly useful when preparing
History of DuPont analysis In the early 1900s, the management of the DuPont company, which was running the first conglomerate, developed the most famous and useful financial ratios.
When closing down the troubled business or sale of the business are not practical alternatives, you should consider bankruptcy. Bankruptcy in the United States is governed by federal
Most small businesses that fail do not go through a bankruptcy process. A small business that operates on a cash basis, has no significant debts, or both, has
Classification of Debt securities in corporate financing A company can issue a variety of debt securities. The permutations of the forms debt can take are ultimately limited only
Every business is born as a startup and goes through identifiable stages of development. During the development period, and particularly when the company seeks financing, its owners and
What is equipment leasing? Equipment Leasing provides a flexible, creative alternative to buying as a way of obtaining the necessary equipment to run a cash-short business. Leasing is
In debt financing, when the loan application is approved, the paperwork associated with the loan has just begun. You will now be involved with important documentation. These documents
When you are seeking to meet the firm’s capital needs, you generally first use non-institutional funding sources. The most popular are personal resources, including friends and family. When