ratio analysis

Tag: ratio analysis

Working Capital Analysis

See Also: Balance Sheet How to Collect Accounts Receivable Factoring Working Capital from Real Estate Quick Ratio Analysis Current Ratio Analysis Financial Ratios Working Capital Analysis Definition Working capital (WC), also known as net working capital, indicates the total amount of liquid assets a company has available to run its business. In general, the more working

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Markup Percentage Calculation

See Also: Margin vs Markup Margin Percentage Calculation Retail Markup Gross Profit Margin Ratio Analysis Operating Profit Margin Ratio Analysis Markup Percentage Definition Define the markup percentage as the increase on the cost price. The markup sales are expressed as a percentage increase as to try and ensure that a company can receive the proper

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Analyzing Your Return on Investment (ROI)

Return on Investment Return on Investment is a useful tool to understand, analyze, and compare different investment opportunities. Return on Investment or ROI measures the efficiency of a specific investment by revealing how net earnings recover the cost of the original investment. Have you ever wondered if the result of your investment was really worth

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5 Tools You Might Not Be Using (But Should)

Historically, CFOs have relied upon traditional financial statements to guide their decision-making.  Today, the prevalence of more sophisticated accounting systems and the demand for more information more quickly has given rise to the need for different kinds of reporting.  Here’s a list of 5 tools that can help give you manage cash, identify areas for improvement, and

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Retail Markup Example

See Also: Margin vs Markup Retail Markup Example Max owns a retail store called Retailco. Retailco sells clothing as well as other items common to department stores. Max’s company has just opened their doors and is still finding a place in the market. As a result, some of the essential financial ratios have not been

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Operating Profit Margin Example

See Also: Operating Profit Margin Ratio Analysis Operating Profit Margin Example In an operating profit margin example, Bill is the founder and CEO of a retail store called Shopco. Shopco recently took a loan. Shopco has experienced a dip in sales, because of the recession, and wants to make sure they can keep net operating

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Margin Percentage Calculation

See Also: Margin vs Markup Markup Percentage Calculation Retail Markup Gross Profit Margin Ratio Analysis Net Profit Margin Analysis Margin Percentage Definition Gross margin defined is Gross Profit/Sales Price. All items needed to calculate the gross margin percentage can be found on the income statement. The margin percentage often refers to sales or profitability which

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Gross Profit Margin Ratio Analysis

See Also: Financial Ratios Operating Profit Margin Ratio Net Profit Margin Margin vs Markup Adjusted Gross Income REO (Return on Equity) Gross Profit Margin Ratio Analysis Definition The gross profit margin ratio, also known as gross margin, is the ratio of gross margin expressed as a percentage of sales. Gross margin, alone, indicates how much

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Days Inventory Outstanding

See Also: Inventory Turnover Ratio Inventory to Working Capital Ratio How to Manage Inventory Days Sales Outstanding (DSO) Days Payables Outstanding (DPO) How to Develop Daily Cash Report 13 Week Cash Flow Report Supply Chain and Logistics Days Inventory Outstanding Days inventory outstanding (DIO), defined also as days sales of inventory, indicates how many days

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Accounts Payable Turnover Analysis

See Also: Accounts Receivable Turnover Days Payable Outstanding Financial Ratios Operating Cycle Analysis Accounts Payable Turnover Definition The accounts payable turnover ratio indicates how many times a company pays off its suppliers during an accounting period. It also measures how a company manages paying its own bills. A higher ratio is generally more favorable as

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Financial Ratios

Monitoring a company’s performance using ratio analysis and comparing those measures to industry benchmarks often leads to improvements in company performance. Not to mention these ratios are often part of loan covenants. The following article provides an overview of the 5 categories of financial ratios and links to their description and calculation. Use the following

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Operating Leases Going Away?

The FASB (Financial Accounting Standards Board) and the IASB (International Accounting Standards Board) are recommending that the use of operating leases be scrapped. In addition, they are recommending that you treat all leases as capital leases. For over 40 years, FAS 13 has been the standard. But this step will change all that. Operating Leases

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