Bookkeeping

Contribution margin is a measure of the profitability of each individual product that a business sells. The concept of contribution margin is applicable at various levels of manufacturing, business segments, and products. Alternatively, the company can also try finding ways to improve revenues. Furthermore, this ratio is also useful in determining the pricing of your […]

The formula below is also used referred to as the days sales receivable ratio. For example, financial institutions, i.e., banks, rely on accounts receivable because they offer their customers credit loans, installments, and mortgages. A short and precise turnaround time is required to generate ROI from such services (you can find more about this metric