How to Analyze and Improve Debtors Turnover Ratio / Collection Period?
The debtors turnover ratio, also called the accounts receivable turnover ratio, is a ratio that is used to gauge the number of times a… 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.
How to Analyze and Improve Inventory Turnover Ratio?
Inventory turnover ratio, a measure of financial ratio analysis, helps to understand how the company carries out effective inventory management. Generally, companies prefer a… Read Article
How to Analyze and Improve Debt to Total Asset Ratio?
The total debt to total asset ratio is a solvency ratio that evaluates a company’s total liabilities as a percentage of its total assets.… Read Article
How to Analyze and Improve Asset Turnover Ratio?
The asset turnover ratio is an important financial ratio for understanding how well the company utilizes its assets to generate revenue. It is imperative… Read Article
How to Reduce Current Ratio and Why?
The current ratio is one of the crucial financial ratios. It is a measure of the company’s liquidity, and hence it is important to… Read Article
How to Analyze (Interpret) and Improve Quick Ratio?
Companies calculate the quick ratio to handle the defects present in the current ratio. The acid-test ratio is a more progressive alternative to the… Read Article
Return on Capital Employed (ROCE)
Return on Capital EmployedReturn on Capital Employed (ROCE) is a profitability ratio that helps determine the profit that a company earns for the capital… Read Article
Return on Assets (ROA)
Return on assets (ROA) is a profitability ratio that helps determine how efficiently a company uses its assets. It is the ratio of net… Read Article
Limitations of Ratio Analysis
Ratio analysis is a widely used tool to analyze a company’s performance. Management of the company uses it to see where the company ranks… Read Article
How to Analyze (Interpret) and Improve Debt Service Coverage Ratio (DSCR)?
The debt service coverage ratio (DSCR) is a very important ratio used extensively by lenders to check if the borrower company has sufficient cash… Read Article
Earnings Per Share
What is the Definition of Earnings Per Share?Earnings per share are the net earnings of the company earned on one share. It is an… Read Article