accounts-payable-turnover-ratio

Accounts Payable Turnover Ratio

| Category: Finance KPIs.

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 by comparing net credit purchases to the average accounts payable during a period. Basically, the accounts payable ratio shows how many times a firm can repay its average accounts payable… Read more

Operating Leverage

Operating Leverage

| Category: Finance KPIs.

If you’ve accessed this page, you are probably eager to find out more about operating leverage. Well, operating leverage is a financial efficiency ratio that is used to calculate the percentage of total costs that are made up of fixed costs and variable costs. Basically, its aim is to find out how well a company… Read more

Operating Leverage

Operating Income

| Category: Finance KPIs.

If you clicked on this article, you’re probably interested in operating income and what it means. Well, it will tell you what you need to know. Operating income is also called EBIT (Earnings before interest and taxes). Basically, it’s a profitability formula that estimates the profits of a firm derived from operations. Therefore, it calculates… Read more

Operating Cash Flow

Operating Cash Flow

| Category: Finance KPIs.

If you’re a beginner when it comes to finances, you would probably want to know what the operating cash flow means. Basically, it’s an efficiency calculation that shows the amount of cash generated by a company’s regular operating activities during a certain time. Therefore, it shows the cash flow generated from the business operations without… Read more

Net-Operating-Profit-After-Tax

Net Operating Profit After Tax

| Category: Finance KPIs.

If you wanted to know what the Net Operating Profit after Tax is and how it works, you came to the right place. Net Operating Profit after Tax, or NOPAT for short, is a measurement of profitability that estimates the theoretical amount of money a firm could deliver to the shareholders if it had no… Read more

Net Working Capital

Net Working Capital

| Category: Finance KPIs.

Ever heard the term “networking capital”, but you didn’t know what it means? If that’s the case, this article comes to your aid. The net working capital is a calculation that estimates the ability of a company to pay off its current liabilities with existent assets. It’s a very important measurement and it’s used by… Read more

Net Profit Margin

Net Profit Margin

| Category: Finance KPIs.

The net profit margin is used to find out whether a business is poorly managed and to see future profitability. By comparing the total sales and the net income, the management can determine how much of the revenue goes towards expenses and how much remains for the company’s future investments. You should know that these… Read more

Net Present Value (NPV)

Net Present Value (NPV)

| Category: Finance KPIs.

The net present value is used to calculate the difference between the cash inflows and outflows of a potential investment or project. To make it easier to understand, it evaluates the profit generated by an investment in comparison with the cost set for the time value of money. Why this formula was invented? Because it… Read more

Net Operating Income

Net Operating Income

| Category: Finance KPIs.

If you work for a real estate agency, you may have heard about net operating income. This is a profitability formula that is used to determine the financial health and profit of a commercial property by deducting the operating expenses from the net income. In short, you can measure the profit of a property after… Read more

Net-Interest-Margin

Net Interest Margin

| Category: Finance KPIs.

How well you administer your money is mainly up to you. However, the net interest margin ratio is a term that shows you how well you invest your money and if the decision is good. It mainly determines the profit of a company when it comes to its investments. Still, this ratio is also used… Read more

Net Income

Net Income

| Category: Finance KPIs.

Net income also known as bottom line or net profit- is the amount of money that remains after you pay all debt and expenses within a company. This is the money you have available to invest in other projects or assets. Anyone that has a job and receives a paycheck can see on their payslip… Read more

Net Fixed Assets

Net Fixed Assets

| Category: Finance KPIs.

Ever wondered how much 100 gums cost 20 years ago compared to today? Such calculations are simple, but for a company that could lose everything, these are crucial. Every company has its own assets. From computers to offices, lands, and buildings, you name them. They all came as a price sometimes, but now, they may… Read more