The growth share matrix was created in 1968 by BCG’s founder, Bruce Henderson. It was published in one of BCG’s short, provocative essays, called Perspectives. At the height of its success, the growth share matrix was used by about half of all Fortune 500 companies; today, it is still central in business school teachings on […]
Tag: Business Chinese
Discount Rate vs. Interest Rate
The discount rate (折現率) is considered as a rate of interest, which is used in the calculation of the present value of the future cash inflows or outflows. The concept of the time value of money uses the discount rate to determine the value of certain future cash flows today. If a person called as […]
The Impairment of Assets in Accounting
Impairment is the estimated loss of value of an asset. There are certain circumstances that reduce the value of an asset that a company has purchased until it is eventually depreciates fully. In general, testing should be performed when there is evidence of impairment.The impairment test is an analysis that must be carried out by […]
Everything You Need to Know About the Income Statement
An income statement, which shows your revenue after expenses and losses, tells a story about the performance of your business over a certain time period, such as monthly, quarterly or annually. Once referred to as a profit-and-loss statement, an income statement typically includes revenue or sales, cost of goods sold, expenses, gross profits, taxes, net […]
5 Basic Financial Ratios and their Chinese Terms
Ratios can be invaluable tools for making decisions about companies you might want to invest in. They are used by individual investors and professional analysts, and there are a variety of ratios to use. Financial ratios are typically cast into five categories: Leverage Ratios Liquidity Ratios Activity Ratios Profitability Ratios Market Ratios The original post […]
Current Ratio and Quick Ratio
To determine whether a company is capable of meeting its debt obligations when it becomes due, two liquidity ratios can be adapted as indexes. Two ratios are current ratio and quick ratio/acid-test ratio. The current ratio is a liquidity ratio that’s used by investors to determine whether a company is capable of paying off all […]
What Should you know before buying corporate bonds?
Investors who buy corporate bonds are lending money to the company issuing the bond. In return, the company makes a legal commitment to pay interest on the principal and, in most cases, to return the principal when the bond comes due, or matures. Because of the time value of money, money received today is worth […]
What is PP&E on balance sheet? And how to say those terms in Chinese?
You’ll find PP&E on a company’s balance sheet as non-current assets, and they are Property, plant, and equipment,which are long-term assets vital to business operations and not easily converted into cash. Accounting and Auditing Requirements in Taiwan follow International Financial Reporting Standards (IFRS); and Chinese Accounting Standards in mainland China have few differences from IFRS. […]