Willamina The breakup value of a company is the estimated value of the company’s individual parts if it were to be liquidated. This value is typically calculated by investment bankers and is used as a starting point when considering whether or not to invest in a company. The breakup value of a company can be calculated … Read more
A bad debt reserve is an allowance for doubtful accounts that a company sets aside to cover any future bad debts that may arise from customers who are unable to pay their debts. This reserve is created by making a provision in the accounting records for future bad debts, and it is used to absorb … Read more
ROAA is a profitability ratio that measures the net income produced by a company as a percentage of its average total assets. ROAA is also sometimes referred to as “return on assets employed” or “return on average capital employed”. The formula for ROAA is: ROAA = Net Income / Average Total Assets where: Net Income … Read more
