Variable costs represent a critical component of financial analysis and business decision making. By understanding how to calculate and analyse variable costs, companies can properly budget, price products and services competitively, and comprehend their cost structure. What is a Variable Cost? A Variable Cost is a corporate expense that changes in proportion with activity -
Sharpe Ratio Explained: Definitions, Formulas and Examples The Sharpe Ratio is one of the most popular risk-adjusted return metrics used in investment analysis and corporate finance. It was developed by Nobel laureate William F. Sharpe and helps investors understand the return of an investment compared to its risk. The ratio is useful for
Annual Percentage Rate (APR): Definitions, Formulas and Examples Annual Percentage Rate (APR) or “Effective Annual Rate” is an important concept in retail lending. It represents the true yearly cost of borrowing money or obtaining credit, expressed as a percentage rate. By understanding APR, borrowers can compare the total cost of loans and make
Year-over-Year (YOY): Definitions, Formulas, and Examples Understanding year-over-year (YOY) growth is a fundamental skill for graduates entering corporate finance roles. Comparing period-over-period performance provides insight into the financial health and trajectory of a business. Article Contents What is Year-Over-Year Growth? Formula for Calculating YOY Growth Calculating YOY Growth in
