Tax Sheild
A tax shield refers to the reduction in taxable income achieved through allowable deductions such as depreciation, interest expense, or amortisation. By lowering taxable profit, tax shields reduce overall tax liability and improve cash flow. Businesses consider tax shields when making financing and investment decisions to optimise after-tax returns.
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Throughput
Throughput represents the rate at which a company generates revenue through sales after deducting direct material costs. It is commonly…
Transaction Costs
Transaction costs are expenses incurred when buying or selling assets or conducting financial deals. These may include brokerage fees, legal…
Total Asset Turnover
Total asset turnover measures how efficiently a company uses its assets to generate revenue. It is calculated by dividing net…
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