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
Turnover Ratios
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
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