Capitalization Policies

Capitalization policies drive the decision within companies to either expense or capitalize new purchases. CEO's and owners that understand their companies cap policy understand more about their fixed asset base, the efficiencies or inefficiencies in their fixed asset accounting function and the extent to which large purchases are or are not being tracked on the balance sheet.

EBITDA

EBITDA is an often misunderstood term and those who know what the acronym means often don't know why certain items are added back to net income. This short tutorial explains EBITDA and why the various components are important when it comes to measuring operating performance.