Receivable Turnover Ratio

The receivable turnover ratio or accounts receivable ratio is a financial tool used to assess the ability of the business to convert accounts receivable into cash within a financial year. Formula The

Inventory Turnover Ratio

The inventory turnover ratio is an efficiency metric that shows how long a business takes to sell all its inventories over a given period. The inventory turnover also measures the

Asset Turnover Ratio

The assets turnover ratio is an essential financial tool used to understand how effective a company is at using its assets to create revenue.  The ratio can be used to

Debt to Capital Ratio

The debt to capital is a tool that shows the financial leverage of a company. It is computed by taking the short and long term liabilities, interest-bearing debt and dividing

Debt to Income Ratio

The debt to income ratio is a tool that relates the monthly debt of an individual to their overall gross income. In this case, the gross income is the revenue

Interest Coverage Ratio

The interest coverage ratio is a financial tool that assesses a company's ability to pay the interest owed from debts. It is computed by dividing the earnings before interest and

Debt to Equity Ratio

The debt to equity ratio is a liquidity ratio that compares the organization's debt to total equity possessed. It illustrates the percentage of financing which comes from the creditors and

The Debt Ratio

The debt ratio relates to the solvency levels in a company as they assess the total liabilities as a percentage of the total assets. The debt ratio shows the company's

Leverage Ratios

A leverage ratio is a financial tool that assesses the relative level of debt load, which the business has incurred. The ratios compare the total debt obligation to either the