Capital Intensity Ratio – Meaning, Formula, Importance, and More
Capital Intensity Ratio is a financial ratio (or specifically an efficiency ratio) that tells a lot about a company’s financial health. It is basically… Read Article
Activity Ratios
A High Accounts Receivable Turnover Ratio
A high accounts receivable turnover ratio generally indicates that credit management, particularly collections of the company, is efficient. However, inferring just that much from… Read Article
Payable Deferral Period – Meaning, Formula, Importance, and More
The payable Deferral Period is the time a company takes to make payments to its suppliers. It is a financial ratio that considers accounts… Read Article
Asset Management Ratios: Types, Interpretations, Advantages, Disadvantages and More
Asset Management Ratios: MeaningA group of ratios that shows how efficiently the company manages its assets to generate and maximize sales revenues is known… Read Article
What is a Good Inventory Turnover Ratio?
An inventory turnover ratio is an important ratio that helps in analyzing the frequency of sales and inventory replacement taking place within a specific… Read Article
Days Inventory Outstanding
What is Days Inventory Outstanding (DIO)?Days Inventory Outstanding (DIO) is a financial metric used to measure the efficiency of a company’s inventory management. It… Read Article
Days Working Capital (DWC)
What is Days Working Capital (DWC)?Days working capital is a very important performance indicator of efficient working capital management. The lower the working capital… Read Article
Efficiency Ratios
Efficiency Ratios are a measure of how well a company is managing its routine affairs. Conceptually, these ratios analyze how well a company utilizes… Read Article
Days Sales Outstanding
What is Days Sales Outstanding (DSO)?Days sales outstanding is a financial ratio that helps calculate the number of days the accounts receivables remain outstanding.… Read Article
Turnover Ratios
The turnover ratios are used to check the company’s efficiency and how it uses its assets to earn revenue. The sales figure is compared… Read Article
Fixed Asset Turnover -Definition, Formula, Interpretation And Analysis
Fixed Asset Turnover DefinitionFixed asset turnover is the ratio of net sales divided by average fixed assets. This ratio is one of the efficiency… Read Article