Ratio Analysis
Ratio Analysis: MeaningRatio analysis is a technique for evaluating financial statements or, to say, for detailed analysis of the financial statements presented by the… Read Article
Ratio Analysis
Ratio analysis is a very important tool in financial analysis. We have covered the complete ratio analysis – its significance, application, importance, and limitations, and all 32 ratios of ratio analysis that are structured and categorized into 6 important heads.
Net Assets vs. Capital Employed
Net Assets and Capital Employed: MeaningWe often need to know the financial health of a company. There are various metrics we use to assess… Read Article
Cash Flow Adequacy Ratio – Meaning, Formula, and More
Cash Flow Adequacy Ratio, as the word suggests, helps in determining if the cash flows that a firm generates are sufficient enough to pay… Read Article
Cash to Income Ratio – Meaning, Formula, Example, and More
The Cash to Income Ratio is a liquidity ratio. This shows the relationship between the cash flow and a firm’s operating income. In other… Read Article
EBITDA Coverage Ratio – Meaning, Formula, Benefits, and More
EBITDA coverage ratio helps in determining the capability of a firm to repay its loan and lease obligations timely and smoothly. Such a ratio… Read Article
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
Importance of Ratio Analysis
Ratio Analysis is a method to understand the liquidity position, efficiency of operations, profitability position, and solvency of a business organization. It is a… Read Article
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
Contribution Margin vs Operating Margin
What do we mean by Contribution Margin and Operating Margin?The contribution margin is the net turnover minus the variable share of the total cost… Read Article
Contribution Margin vs Gross Margin
What do we mean by Contribution margin and Gross margin?Contribution Margin and Gross Margin are two important concepts in Management Accounting. They also help… 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