In financial management, debt service coverage ratio (DSCR) refers to the amount of cash flow available with the firm to service the interest and principal cost for one year. This includes sinking fund payments. It is a reliable tool to determine the repayment capacity of the firm, i.e., if the firm’s income is sufficient to […]
There are two kinds of financing which the firms often resort to for generating fresh financing for short term. For one, they could choose between several methods of getting the short term finances through banks. Such methods are usually resorted to by listed companies and other companies which have reasonable credit worthiness with their bankers. […]
When a company “goes public” they need to initiate an IPO or Initial Public Offering. This video explains the basics about IPOs and some of the pluses and minuses of them.
In this video, Tom Byers explains that smaller companies need to pay extra attention on how they spend their cash because if they run out of cash, it is game over for them. Byers uses the example of Palm Inc. to show how well the company managed their cash flow.