What is the Working capital turnover ratio? Among many other turnover ratios, one of the most important ratio is the Working Capital Turnover Ratio. Similar to other turnover ratios like the Asset turnover ratio or Inventory turnover ratio, this ratio helps in understanding the efficiency of the company. Working capital turnover ratio meaning Working capital turnover …
What is Inventory turnover ratio? As part of Financial Ratio analysis, Activity ratios predominantly indicate the efficiency of the company in managing its resources. Inventory turnover ratio is one of the most important activity ratio that is more relevant in the case of manufacturing companies. Similar to other activity ratios, even this ratio indicates how …
What is Payable turnover ratio ? As part of financial ratio analysis, activity ratios play an important role. These ratios help in understanding the efficiency at which the company utilizes the resources. Similarly, another important activity ratio is the Payable turnover ratio. Let us understand about this turnover ratio in-depth. Payable turnover ratio meaning As …
What is Days payable outstanding? The Days payable outstanding or Payable, in short, is yet another important activity ratio that helps in understanding how well the company manages its Accounts Payables. In the previous resource, we discussed the Payable turnover ratio. Similarly, even this ratio is an integral part of analyzing the overall efficiency of …
What is the Asset turnover ratio? The total asset turnover ratio is yet another important activity ratio that measures the efficiency of the company in utilizing the assets as part of its operations. Asset turnover ratio meaning The asset turnover ratio tries to build a relationship between the company’s revenue and the company’s overall assets. …
What is Days Inventory outstanding? Days Inventory outstanding or Inventory Days is yet another important activity ratio. Earlier, we discussed Inventory turnover ratio which indicates the number of times the company turns its inventory during the year. Now, let us look at – Days Inventory outstanding. This ratio is also known as Inventory turnover days, …
What is Fixed asset turnover ratio? As part of Financial Ratio Analysis, activity ratios help in understanding the efficiency with which a company utilizes its resources. Similarly, an important activity ratio that measures the efficiency of the company in utilizing the assets as part of operations is – Fixed asset turnover ratio Fixed asset turnover …
What is days sales outstanding ratio? Days sales outstanding or simply Receivable days is an important activity ratio that helps in understanding the efficiency of the company’s operations. It shows how efficient is the company in managing its receivable balance. Days sales outstanding meaning When the company makes a sale of a product or service, …
What is the Receivable turnover ratio? Receivable turnover ratio or debtor turnover ratio is an activity ratio that indicates the efficiency of the company in managing its receivable balance. Receivable turnover ratio meaning When the company makes a sale of a product or service, it often provides a certain credit period for the buyer to …