Accounts Payable Turnover Ratio

If you accessed this article, it means that you are probably looking for information about accounts payable turnover ratio. Here is the information that you’re looking for, in that case. The accounts payable turnover ratio is a liquidity ratio that indicates the ability a company has to repay its accounts payable. The repayment is done… Read more »

Financial Metrics
Accumulated Depreciation Ratio Explained

In today’s post, we will focus on explaining the specifics of the accumulated depreciation ratio. We’re talking about a fixed assets ratio that calculates the value, age, and usefulness of the fixed assets present on a firm’s balance sheet. In essence, these are compared in relation to the total amount of depreciation taken on by… Read more »

Financial Metrics
Asset Coverage Ratio

This article covers the far-reaching topic of the asset coverage ratio. We’re talking about a risk measurement whose aim is to calculate a company’s capability of repaying its debt, by selling its existing assets. So, thanks to this ratio, investors can determine how many assets are necessary for paying down any existing debt obligations. As… Read more »

Financial Metrics
Asset Turnover Ratio

The asset turnover ratio is a widely used efficiency ratio that analyzes a company’s capability of generating sales. It accomplishes this by comparing the average total assets to the net sales of a company. Expressly, this ratio displays how efficiently a company can utilize this in an attempt to generate sales. To be more precise,… Read more »

Financial Metrics
Asset Turnover Ratio: The Basics

The asset turnover ratio is a widely used efficiency ratio that analyzes a company’s capability of generating sales. It accomplishes this by comparing the average total assets to the net sales of a company. Expressly, this ratio displays how efficiently a company can utilize this in an attempt to generate sales. To be more precise,… Read more »

Financial Metrics
Average Inventory Ratio

The purpose of this article is to explain the characteristics of the average inventory ratio, how to calculate the ratio, and why it is utilized. For one thing, the average inventory ratio is known as a usage ratio that specifically calculates how much time it takes a firm to sell its inventory. Expressly, it points… Read more »

Financial Metrics
Average Payment Period – The Specifics

Also known as an important solvency ratio, the average payment period (APP) assesses how much time it takes for a business to pay its vendors, in the case of purchases made on credit. Many times, when a business makes an important purchase, credit arrangements are made beforehand. These arrangements might give the buyer a specific… Read more »

Financial Metrics
Break-Even Point Analysis

To start with, the break-even point analysis represents a measurement system that determines the margin of safety. It does this by comparing the revenues or units that have to be sold to cover both fixed and variable costs linked with making the sales. Specifically, this ratio is a means of calculating the potential profitability of… Read more »

Financial Metrics
CAGR

The percentage of an investment, in terms of it increasing and decreasing year over year, is determined with the financial investment calculation that’s known as CAGR. This stands for Compound Annual Growth Rate. It can be compared with the annual average rate of return for a certain investment made by your company over a set… Read more »

Financial Metrics
Cash Earnings/ Share

A company’s financial performance can be measured by using a certain profitability ratio, namely, Cash EPS, which is more commonly known as Cash Earnings per Share. This ratio calculates the cash flows on a per share basis. By ignoring all of the non-cash items that impact the normal Earning per Share, the Cash Earning per… Read more »

Financial Metrics