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Tip of the Day Pay All Credit Card Balances In Full Each Month

Pay All Credit Card Balances In Full Each Month - It is necessary to pay all credit card balances in full each month to prevent paying extremely high interest rates...

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EBIT

Definition: Earnings before interest and taxes is roughly equivalent to a company's operating profit.  Investors can look at this to see how the company is doing operationally, regardless of its capital structure (interest payments) or taxes.

Advice: EBIT is a good number to look at when comparing companies within an industry.  Because companies have different capital structures, interest expenses can skew their earnings numbers.  EBIT removes this from consideration and makes for easier comparisons.

 

Discuss It!

Horny Goat Weed UK said:

Nice acronym, certainly easier than writing each word out!

writing_service said:

Thanks a lot for sharing this article.

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Definition of the Day Coverage Ratio

Coverage Ratio - the term coverage ratio is a type of accounting tool that helps measure a company’s ability to survive and grow.  Simply by comparing the company’s assets (gross profits) and liabilities (expenses) are a form of figuring the coverage ratio. The higher the assets, and the lower...

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