Interest Coverage Ratio: Can Operating Earnings Support Borrowing Costs?
Test the earnings buffer over borrowing costs while keeping cash timing and principal repayments in view.
Read guide · 5 minTHE SETUPBILINGS JOURNALPractical guides for
Practical guides for
Indian businesses.
Understand your accounts, build reliable bookkeeping routines and work through GST questions with clear examples and source-linked explanations.
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Browse all categoriesReturn on Capital Employed: Measuring Results Against Business Investment
Measure operating earnings against the capital supporting them and identify whether margin or capital use drives the result.
Read guide · 5 minReturn on Assets: How Productively Is Your Business Using Its Assets?
Assess profit relative to the asset base and identify the operating and accounting factors behind the result.
Read guide · 5 minWhy Return on Equity Can Rise When Business Debt Increases
Distinguish a stronger operating business from a higher equity return created by borrowing and a smaller equity base.
Read guide · 5 minHow to Interpret Inventory Turnover Without Ignoring Stock Availability
Read turnover alongside demand, replenishment lead times and product-level availability before reducing inventory.
Read guide · 5 minReceivable Turnover: What Collection Speed Says About Your Sales
Connect credit sales with average customer balances and test what the average hides.
Read guide · 5 minPayable Turnover: Reading Supplier Payment Patterns
Understand what supplier-payment averages reveal and why slower payment is not automatically better.
Read guide · 5 minThe Cash Conversion Cycle Explained with a Trading Business Example
Follow cash through stock, customer credit and supplier payment to see why profitable growth can require funding.
Read guide · 5 minHow to Compare Revenue by Product, Service and Customer Segment
Organise sales into useful dimensions and explain how the mix changes total business performance.
Read guide · 5 minHow to Measure Dependence on Your Largest Customers
Assess how much revenue, profit and cash depend on a small number of connected buyers.
Read guide · 5 minWhich Expense Ratios Should a Small Business Track Monthly?
Track a small set of cost relationships that point to decisions rather than collecting percentages without context.
Read guide · 5 minHow Other Income Can Distort a Simple Profit Comparison
Identify which sources lifted final profit and whether they reflect stronger ordinary customer business.
Read guide · 5 minHow to Explain Unusual Gains and Costs in a Business Review
Explain material events without removing inconvenient costs or disguising the reported result.
Read guide · 5 minWhat Negative Equity Means and Which Records to Review
Separate the accounting position from immediate cash pressure and investigate the records behind accumulated losses or withdrawals.
Read guide · 5 minHow to Check Whether Reported Profit Is Turning into Operating Cash
Find out whether earnings are being collected or absorbed by operating balances and timing differences.
Read guide · 5 minRetained Earnings Explained: Why Accumulated Profit Is Not a Cash Balance
Read retained earnings as an equity history and use cash-flow records to find the money’s current form.
Read guide · 5 minBalance Sheet Red Flags Business Owners Should Investigate
Use unusual balances as evidence-led review prompts rather than treating every movement as proof of a problem.
Read guide · 5 minProfit and Loss Red Flags Hidden Behind Growing Revenue
Test whether growing sales produce dependable profit after all relevant costs and adjustments.
Read guide · 5 minHow to Prepare a Profitability Report for Each Business Segment
Show how each activity contributes while keeping shared costs and internal transactions transparent.
Read guide · 5 minHow to Compare Branch Results on a Consistent Basis
Build a fair branch comparison that separates operating differences from accounting and allocation choices.
Read guide · 5 minHow to Read Product Profitability After Returns and Direct Costs
Follow a product’s realised revenue and attributable costs before deciding which items deserve more sales effort.
Read guide · 5 minHow to Measure Profitability Across Different Service Lines
Measure the cost of delivering each service without assuming that a high billing rate guarantees a strong return.
Read guide · 5 minHow to Present Actual Results Against Budget in One Clear Report
Show what changed, why it changed and what action follows without confusing activity growth with cost inefficiency.
Read guide · 5 minRolling 12-Month Reports: Seeing Past a Single Financial Year
Use a moving full-year window to see recent performance while retaining monthly and seasonal detail.
Read guide · 5 min