Inventory financing is a type of short-term loan businesses use to purchase inventory. This is often necessary for small to mid-sized businesses to manage operational cash flow effectively.
A financial transaction where one party sells a piece of land to another party and then leases it back for a long-term period. This arrangement allows the seller to continue using the land while freeing up capital.
Overcapitalization arises when a company has more capital than it can efficiently use in its operations, often leading to financial inefficiencies such as excessive interest charges or diluted dividends.
Return on Capital Employed (ROCE) is an accounting ratio that measures an organization's profitability and efficiency in using its capital. It is expressed as a percentage of profit relative to the capital employed.
