What's it: Activity ratio is a financial ratio to measure how well a company manages its assets. We then relate it to revenue or expenses to pay

# Activity Ratio

## Working Capital Turnover: Formula, Calculation, and Interpretation

What's it: Working capital turnover is a financial ratio to measure how efficiently companies use their working capital to generate

## Days Payable Outstanding: How to Calculate and Interpret it

What's it: Days payable outstanding (DPO) is a financial ratio showing how many days on average it takes a company to pay its

## Accounts Payable Turnover Ratio: How To Calculate And Read It

What's it: The accounts payable turnover ratio is a financial ratio showing the number of times a company pays its suppliers over a

## Days of Inventory on Hand: Formula and How to Calculate

What's it: Days of inventory on hand (DOH) is a financial ratio showing how many days on average a company converts its inventory into

## Accounts Receivable Turnover: Formula, Calculation, How to Read It

What's it: Accounts receivable turnover is a financial ratio showing the number of times a business converts accounts receivable into cash. Since

## Days Sales Outstanding: Formula, How to Calculate and Read It

What's it: Days sales outstanding (DSO) is a financial ratio to measure how many days on average it takes the company to collect on

## Inventory Turnover Ratio: Formula, Calculation and How to Read It

What's it: Inventory turnover ratio is a financial ratio to show the number of times companies convert their inventory into sales

## Fixed Assets Turnover Ratio: How to Calculate and Interpret

What's it: The fixed-asset-turnover ratio is a financial ratio to measure how productively and efficiently a company uses its fixed

## Asset Turnover Ratio: Calculation and Interpretation

What's it: The asset turnover ratio is a financial ratio to measure the overall efficiency of business operations. It shows how well