Author: Arabian Media staff

The capital adequacy ratio (CAR), also known as capital to risk-weighted assets ratio, measures a bank’s financial strength by using its capital and assets. It is used to protect depositors and promote the stability and efficiency of financial systems around the world. Key Takeaways The capital adequacy ratio (CAR) is a measure of how much capital a bank has available, reported as a percentage of a bank’s risk-weighted credit exposures.The purpose is to establish that banks have enough capital on reserve to handle a certain amount of losses before being at risk of becoming insolvent.Capital is broken down as Tier-1, core…

What Is the Cost Accounting Method? The cost accounting method, which assesses a company’s production costs, comes in a few broad styles and cost allocation practices. However, cost accounting comes with advantages and disadvantages over other types of accounting methods. Key Takeaways The cost accounting method is an internally focused, firm-specific system used to estimate cost control, inventory, and profitability.It can be much more flexible and specific when compared to general accounting methods.The complexity of cost accounting, however, means that it can be costly in a number of ways. Understanding Cost Accounting Cost accounting was originally developed in manufacturing firms,…

Key Takeaways Employers can contribute to employee HSAs and FSAs, which help pay for qualified medical expenses tax-free.Enroll in a 401(k) to capture employer matching or use an ESPP for discounted company stock.Check for valuable workplace perks like tuition assistance, commuter benefits, and wellness reimbursements.Tax credits directly reduce what you owe at tax time—more impactful than deductions.Earn rewards on everyday spending with a credit card, but always pay your balance in full. The Powerball jackpot for Sept. 6, 2025, has ballooned to a staggering $1.8 billion, luring millions to dream of instant riches. But with odds of just 1 in…

Loss Ratio vs. Combined Ratio: An Overview The loss ratio and combined ratio are used to measure the profitability of an insurance company. The loss ratio measures the total incurred losses in relation to the total collected insurance premiums, while the combined ratio measures the incurred losses and expenses in relation to the total collected premiums. Key Takeaways The loss ratio and combined ratio are used to measure the profitability of an insurance company.The loss ratio measures the total incurred losses in relation to the total collected insurance premiums.The combined ratio measures the incurred losses as well as expenses in…

What Is Value Chain Analysis? Value chain analysis is an investigation of a business’s value chain, the full range of activities a company conducts to create a product or a service. The purpose of value-chain analysis is to increase production efficiency so that a company can deliver maximum value for the least possible cost. Key Takeaways Companies use value chain analysis to determine the lowest-cost methods for delivering the most value.A company can gain a competitive edge and boost profits by analyzing the five primary and four supportive value chain activities and creating efficiencies in them.A primary disadvantage to this…

CAPM: An Overview Many investors use the capital asset pricing model (CAPM) as a way to estimate the potential return of a stock or other asset within the context of its intrinsic risk. Used primarily to analyze relatively risky investments, CAPM gives the investor a way to evaluate the stock’s potential reward given its potential risk and compare it to other alternative investments. A Microsoft Excel spreadsheet can be used to calculate CAPM. Key Takeaways CAPM can be used to help you build a portfolio of stocks that have the potential for the reward you seek given the level of risk…

Key Takeaways The United States Postal Service loses billions of dollars annually, which has prompted calls from President Trump to privatize the organization.Privatization could result in higher costs, slower deliveries, and reduced services, particularly in rural areas where affordable options are already limited.While Amazon relies on the USPS for its last-mile deliveries, it is expanding its own logistics network to reduce dependency.Transforming the USPS into a private entity may remedy its financial issues but risks undermining its role in providing affordable and equitable service nationwide. Privatizing the United States Postal Service (USPS) has been a controversial topic for years, gaining…

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The financial world, in all its incarnations, makes for great cinema. Tragedy, comedy, ingenuity, catastrophe, and redemption are all present in the many finance movies that Hollywood has produced over the years. While most finance movies portray financial professionals in a less than flattering light, the unbelievable stories of excess, risk-taking, and, of course, greed all make for compelling cinema. They are required viewing for anyone thinking of, or already working in the business. The 10 finance and Wall Street movies below, in no particular order, were chosen for their financial and stock market storylines plus their “plucked from the…

Key Takeaways Freelancing doesn’t mean you can’t save for retirement. Contributions to a Roth IRA are made using after-tax dollars, and your account grows tax-free.SEP IRAs, SIMPLE IRAs, and solo 401(k)s let you save more for retirement than a Roth IRA. Save early, maximize your contributions, and speak with a financial advisor. Approximately 14% of the workforce in the United States works in the gig economy as their primary source of income. While freelancing offers you independence, control, and flexibility, it often lacks the benefits that come with traditional employment, such as a workplace retirement savings plan. Exploring Retirement Options…