Magnimetrics Library
Practical finance, Excel, valuation, and FP&A articles with downloadable working files where relevant.
To make an informed decision about a loan, business owners and managers must understand how much their monthly payments will be. A loan calculator can help you do just that. You can get a good idea of your monthly payments by inputting the principal amount of the loan, the interest rate, and the number of […]
“If you cannot explain it simply, you don’t understand it well enough.” Albert Einstein It’s a simple sentence, but it carries a lot of truth. A lack of simplicity is often why models are so complicated that they are almost useless. And I’m not just talking about Excel workbooks full of hard-to-track VLOOKUPs, convoluted named […]
The stock market is a complex system with which even the most experienced investors can struggle. However, there are a few key concepts that every investor should be aware of to make informed decisions about their money. In this article, we will discuss some of these critical concepts. We are talking about a collection of […]
Lowering churn is a top priority for many businesses regardless of their industry. Churn is the last thing you want among many key performance indicators (KPI). A higher churn rate means more customers drop off from your services. With that said, how do you reduce customer churn rate? How do you generate new demand for […]
A Debt Amortization Schedule outlines how a company will be settling its debt and interest over time. Businesses often rely on debt capital (loans) to support their growth strategy and expansions. In general, there are two types of loans you would generally see on a company’s balance sheet: Working capital loans would sit in the […]
Artificial Intelligence (AI) is one of the most rapidly emerging and progressive technologies globally. We can define it as “the ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings.” (Britannica, https://www.britannica.com/technology/artificial-intelligence) Over the next few years, AI will have significant influence not only in accounting and finance but […]
As we discussed in our last article, debt covenants are provisions within financial agreements such as loans or credit lines between lenders and borrowers that restrict certain activities like dividends and asset sales to protect lenders’ interests and maintain their risk exposure at acceptable levels. If you are not familiar with debt covenants, I suggest […]
A covenant is a promise that restricts or impairs the ability of one party to act in some way. When a company raises debt, it is usually subject to conditions, restrictions, and terms known as debt (or financial) covenants. The purpose of debt covenants is to protect creditors by ensuring that borrowers act responsibly and […]
The Fintech industry is one of the fastest-growing industries due to the competition. Almost by default, all of the big players in the Fintech industry are well-funded and backed by investors with deep pockets. As a result, startups in Fintech are battling over every customer and are not afraid to pay top dollars for customer […]
An important financial event for any organization is the month-end close process. Whether the business entity you work with is a corporation, small business, or non-profit, closing the books is universally important. This activity indicates an organization’s revenue, debt, accounts payable, and profits. For newly minted accountants, the first-ever accounting month-end close process is a […]
