Fixed Costs

Fixed costs are defined as any cost or expense that does not vary with changes in the level of business activities like sales or production. Learn more about fixed cost in this tutorial. Continue reading

TIE Ratio

The TIE Ratio shows the ability to pay interest charges out of earnings. (TIE stands for times interest earned.) This interactive tutorial walks you through the calculations, including where to find the numbers on the financial statements. Continue reading

EBITDA Coverage

The EBITDA coverage ratio shows if earnings are able to satisfy all financial obligations including leases and principal payments. (EBITDA is short for earnings before interest, taxes, depreciation, and amortization.) This interactive tutorial walks you through the calculations, including where to find the numbers on the financial statements. Continue reading

Cash Flow: Quiz

Study terms from the cash flow statement like net cash, prepaid expenses, payment of dividends, and more with this fun quiz. Continue reading

Cash Flow

Learn about the structure and contents of a statement of cash flows by examining one for the fictitious company Bogus Manufacturing, Inc. Continue reading