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Asset Turnover Ratio
The formula for the asset turnover ratio evaluates how well a company is utilizing its assets to produce revenue
Asset to Sales Ratio
The asset to sales formula can be used to compare how much in assets a company has relative to the amount of revenues the company can generate using their assets.
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Average Collection Period
The average collection period is the amount of time it takes for a business to receive payments owed in terms of accounts receivable.
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Contribution Margin
The formula for contribution margin is the sales price of a product minus its variable costs. In other words, calculating the contribution margin determines the sales amount left over after adjusting for the variable costs of selling additional products.
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Current Ratio
The Current Ratio provides a calculable means to determining a company's liquidity in the short term.
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Days in Inventory
This formula is used to determine how quickly a company is converting their inventory into sales.
Debt Coverage Ratio
The debt coverage ratio is used in banking to determine a company's ability to generate enough income in its operations to cover the expense of a debt.
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Debt Ratio
The debt ratio is a financial leverage ratio used along with other financial leverage ratios to measure a company's ability to handle its obligations.
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Debt to Equity Ratio, D/E
Used to measure a company's ability to handle its long term and short term obligations.
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Inventory Turnover Ratio, ITR
The formula for the inventory turnover ratio measures how well a company is turning their inventory into sales
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Net Profit Margin, NPM
The net profit margin formula looks at how much of a company's revenues are kept as net income
Net Working Capital, NWC
The formula for net working capital (NWC), sometimes referred to as simply working capital, is used to determine the availability of a company's liquid assets by subtracting its current liabilities
Payback Period, PP
The payback period formula is used to determine the length of time it will take to recoup the initial amount invested on a project or investment
Quick Ratio
The Quick Ratio is used for determining a company's ability to cover its short term debt with assets that can readily be transferred into cash, or quick assets
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Receivables Turnover Ratio
The receivables turnover ratio formula , sometimes referred to as accounts receivable turnover, is sales divided by the average of accounts receivables
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Return on Assets, ROA
The return on assets formula looks at the ability of a company to utilize its assets to gain a net profit
Return on Equity, ROE
The formula for return on equity, sometimes abbreviated as ROE, is a company's net income divided by its average stockholder's equity