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 whether the...
Tag: accounting ratios
Days Payable Outstanding (DPO), or as it’s also called, creditor days ratio (CDR), is an efficient formula that shows how long it takes for a company to repay its suppliers. CDR is used together...
The 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 to collect...
Following our articles looking at business analysis, we turn to the net profit ratio (NPR). In business, we also often refer to this ratio as the Net Profit Marin. Rather than looking at return on...
Inventory turnover ratio is an important metric used by investors and analysts in the their analysis of a firms financial performance. The ratio shows how many times stock is sold during a financial...
The Return on Equity (ROE) formula 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...