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Working capital (WC) is a financial metric which represents operating liquidity available to a business, organisation, or other entity, including governmental entities. . Along with fixed assets such as plant and equipment, working capital is considered a part of operating ca
Capital account of a partner is increased in the following situations: The owner made additional investments during the year. The owner made guaranteed payments to the firm. Partnership earned profits, and a share of profits was allocated to the partner. The increase in the capital will record in credit side of the capital account.
To be well-capitalized under federal bank regulatory agency definitions, a bank holding company must have a Tier 1 capital ratio of at least 6%, a combined Tier 1 and Tier 2 capital ratio of at least 10%, and a leverage ratio of at least 5%, and not be subject to a directive, order, or written agreement to meet and maintain specific capital levels.
Under-capitalization refers to any situation where a business cannot acquire the funds they need. An under-capitalized business may be one that cannot afford current operational expenses due to a lack of capital, which can trigger bankruptcy, may be one that is over-exposed to risk, or may be one that is financially sound but does not have the funds required to expand to meet market demand.
The utility company has the right to choose any capital structure it deems appropriate, but regulators determine an appropriate capital structure and cost of capital for ratemaking purposes. [3] Various leverage or gearing ratios are closely watched by financial analysts to assess the amount of debt in a company's capital structure. [4] [5]
This includes risk-based capital in our traditional subsidiaries to be between 425% and 450%, holding company liquidity to be greater than $2 billion and ample leverage capacity between 21% and 22%.
By managing and controlling working capital the financial manager can reallocate and restructure funds to provide the capital that the company requires from an internal source. Working Capital is a measure of a firm's ability to meet its short-term financial obligations , the firm's efficiency or lack-off in business operations and short-term ...
On February 19, Capital One announced it would acquire Discover in an all-stock transaction worth $35.3 billion. Both companies are among the largest credit card issuers in the country while ...