What's it: Working capital turnover is a financial ratio to measure how efficiently companies use their working capital to generate
Financial Analysis
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
Solvency Ratio: Formulas, Examples, and Calculations
What's it: The solvency ratio is a financial ratio to measure a company's ability to meet its long-term obligations. To calculate it, we divide
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EBIT Margin: Calculation and Interpretation
What's it: EBIT margin is a profitability ratio to measure how efficiently a company converts its revenue into profit before paying
NOPAT Margin: Formula, Calculation, and Interpretation
What's it: NOPAT margin is a profitability ratio to measure how efficiently a company generates profit from its core business after
EBIAT Margin: Formula, Calculation, and Interpretation
What's it: EBIAT margin is a profitability ratio to measure how efficiently a company generates profit from all its activities before
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Return on Common Equity (ROCE): Calculation and Interpretation
What's it: Return on common equity (ROCE) is a profitability ratio for measuring the return to common stockholders on their invested
Operating ROA: Formula, Calculation, and Interpretation
What's it: Operating ROA is a profitability ratio to measure how well a company is using its assets to generate profits from its core
Cost of goods manufactured: Meaning, Components, How to Calculate
What's it: Cost of goods manufactured refers to the collection of production cost plus the change in work-in-process inventory. These production
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Deferred Tax Assets: Meaning, Examples
What's it: A deferred tax asset represents an inflow of future tax-related economic benefits. It eventually returns to business in the form of
Investment Property in Accounting: Meaning, Pros, Cons, Reporting
What's it: An investment property is a company's long-term investment in the property sector to obtain a rental income or capital appreciation. It can
Cash Equivalent: Meaning, Examples And Why It Matters
What's it: A cash equivalent is a financial asset that can easily be converted to cash and have minimal risk of changing prices. Because of this
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Cash in Accounting: Meaning, Reporting, Pros, Cons
What's it: Cash is money in the form of banknotes or coins. In accounting, other examples of cash are checks, notes, and demand deposits. Cash
Noncurrent Liabilities: Meaning, Items, Why They Matter
What it is: Noncurrent liabilities represent liabilities which due more than one year or one operating cycle. Together with current liabilities,
Noncurrent Assets: Meaning, Items, Why They Matter
What it is: Noncurrent assets are long-term assets, in which the full value will not be realized during the accounting period. They represent
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Types of Financial Ratios: Their Analysis and Interpretation
Financial ratios are important metrics for analyzing a company's finances. In rating or stock analyst reports, we will find various ratios.