- Business
Cost of Goods Sold (COGS): Important to Know Your Product Costs
Cost of Goods Sold (COGS) is a common term in accounting, especially in financial statements for businesses. COGS refers to the total cost incurred to produce goods or services sold by a company during a specific period. These costs include various elements directly contributing to the production of those goods or services. In this article, we will discuss the definition…
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OPEX and CAPEX: Two Distinct Costs in Business
In running a business, it is crucial to understand two major types of expenditures commonly found in financial reports: Capital Expenditure (CAPEX) and Operational Expenditure (OPEX). These two types of costs have distinct characteristics, functions, and accounting treatments, each impacting a company’s financial and strategic decisions differently. What is CAPEX? CAPEX, or Capital Expenditure, refers to expenses incurred by a…
Read More » - Muslim Lifestyle
Causes of Differences in Fiqh Opinions and How to Handle Them Wisely
Differences of opinion (ikhtilaf) among scholars is an inherent feature in the study of Islamic jurisprudence (fiqh). These differences have been evident since the era of the Companions (sahabah) and the following generations of scholars. They arise due to the dynamic nature of Islamic law, which is both comprehensive and adaptable to the complexities of human life. Rather than a…
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EBITDA: How to Understand Operational Profit
EBITDA is one of the essential financial indicators used to assess a company’s performance. This term is frequently used by financial analysts, investors, and management to understand how efficiently a company generates profits from its core operations. This article will discuss what EBITDA is, how to calculate it, why it is important, and some criticisms of its use. What is…
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Return on Assets (ROA): Are Your Assets Maximized?
In the modern business landscape, ensuring efficient utilization of company assets is essential for long-term profitability and competitiveness. One key metric that helps measure how effectively a company is using its assets is Return on Assets (ROA). ROA provides insights into how much profit a business generates from its assets, making it a valuable tool for management, investors, and stakeholders.…
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Return on Equity: How Shareholders Measure Their Returns
Return on Equity (ROE) is one of the most widely used financial metrics by investors to assess the profitability of a company. It provides a clear picture of how efficiently a company is using its shareholders’ equity to generate profits. In simpler terms, ROE shows how much profit a company makes with the money shareholders have invested. This article will…
Read More » - Islamic Economics
Islamic Ruling on Mudharib (in Mudharabah) Taking Profits Before the Final Calculation
Mudharabah is a form of partnership in Islamic economic systems involving two main parties: the capital provider (shahibul maal) and the entrepreneur or manager (mudharib). The capital provider supplies the funds, while the mudharib manages the business using those funds. Profits are shared according to a pre-agreed ratio, while losses are borne by the shahibul maal, except when losses occur…
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Scrub Daddy: An Inspirational Story of a Simple Business
Scrub Daddy is a simple product that has become one of the greatest success stories in the history of the television show Shark Tank. The initial idea came from a daily need: a sponge that could clean various surfaces more effectively. Within a few years, Scrub Daddy managed to reshape the household cleaning product market in the United States and…
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Work or Purchase in Places that Sell Alcohol?
In Islamic jurisprudence, working or buying food from a place that sells alcohol (khamr) involves several dimensions that must be analyzed thoroughly. The opinions of scholars from the four major schools of thought within Ahlus Sunnah wal Jama’ah—Hanafi, Maliki, Shafi’i, and Hanbali—help clarify these perspectives. This article will discuss these issues in detail, based on jurisprudential perspectives, evidence from the…
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Gross vs Net Profit: Understanding the Difference for Your Business
Running a business involves careful financial calculations, especially when it comes to calculating profit. Two terms that often come up in this context are gross profit and net profit. Understanding the difference between the two is crucial, as they can influence business decisions, pricing strategies, and the overall financial health of your business. This article will explain in detail the…
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