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ROE AND ROTA

Return on Investment: measures of performance

In the analysis of the return a particular investment is generating there are two measures that provide complementary and yet different appraisals. In a two part series we will look ...
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Net Profit Margin Ratio Including Analysis and a Calculator

Net Profit Margin is one of the most widely used ratios by investors and analysts. It is used in order to understand the ability that a company has to translate the revenue generated ...
Adjusted Present Value

Return on Assets Ratio (ROA) – Including an online calculator

The Return on Assets Ratio (ROA) shows how well a company uses its’ assets in order to generate profits. ROA is one of the  profitability ratios that are used to understand and assess ...
Payback Period

Debtor Days Ratio- Formula, Analysis and Calculator

Debtor Days Ratio shows how quickly a company turn the credit sales made into cash. It’s therefore reasonable that the smaller the debtor days ratio, the quicker a company is able ...
Discounts

Inventory Turnover Ratio Formula including Analysis with Examples

Inventory turnover ratio is an important financial ratio that shows how many times stock is sold during a  a financial year. Of course, inventory turnover ratio can be also calculated ...
Return on Equity

Return On Equity Ratio (ROE) Formula, Analysis and Calculator

Return on Equity (ROE) is a financial ratio that shows the profit generated by a company in a year compared to the shareholder funds available. It therefore shows how much profit (attributable ...
Return on Equity

Creditor Days Ratio or Days Payable Outstanding- How to calculate it and interpret it

Days Payable Outstanding (DPO) or as it’s also called, creditor days ratio, is an efficient ratio that shows how long it takes for a company to repay its suppliers. Creditor Days ...
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