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

# Financial Ratio

## 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

## Return on Assets (ROA): Calculation and Interpretation

What's it: Return on assets (ROA) is a profitability ratio to measure how well a company uses its assets to generate profits. This

## 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

## 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

## Gearing: Meaning, How to Calculate, Pros and Cons

What's: Gearing shows you how much a company depends on debt in its capital structure. It's a term in the UK and the same as leverage for the

## DuPont Analysis: Formula, Decomposition, Interpretation, Pros, Cons

What's it: DuPont analysis is an approach to breaking down the ratio of return on equity (ROE) into several specific ratios. It helps us know why

## 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

## 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.

## Fixed Charge Coverage Ratio: Calculation and Interpretation

What's it: The fixed charge coverage ratio is a financial ratio to measure how well a company can cover interest and lease payments.

## Pretax Profit Margin: Its Calculation and Interpretation

What's it: Pretax profit margin is a profitability ratio to measure how successfully a company converts revenue into profit before part

## Profitability Ratio: Formulas, Types, and Examples

What's it: Profitability ratio is a financial ratio to measure the company's ability to generate profit. Profitability ratios are a key

## 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

## Defensive Interval Ratio: Importance, Calculation, and Interpretation

What's it: The defensive interval ratio is a financial ratio to measure how long a company can continue to meet daily expenses using