A method of company evaluation where a firm is compared with other similar firms that have a desired credit rating to determine appropriate accounting ratio targets.
An in-depth exploration of Days' Sales Outstanding (DSO), including its calculation, importance, historical context, and applications in financial management.
Operating Performance Ratios are various ratios used to analyze the financial performance of a company in terms of the return generated by the sales for an accounting period. The higher the ratios, the higher the profitability of the organization. Examples include net profit percentage and gross profit percentage.
Ratio Analysis utilizes accounting ratios to assess a company's operating performance and financial stability, examining profitability, solvency, and financial structure through comparisons with industry standards over time.
Trend Analysis involves the analysis of the performance of a company or industry over a period using accounting ratios.
A comprehensive overview of Net Profit Margin, a crucial financial metric indicating the percentage of after-tax profit relative to sales.
An in-depth examination of activity ratios, including their definition, key formulas, practical applications, various types, and how they measure a firm's efficiency in converting assets into cash or sales.
A comprehensive overview of the EBITDA margin, including its definition, formula, usage, and significance in measuring a company's profitability.
An in-depth guide on the overall liquidity ratio, including its definition, how it is calculated, and its importance for a company's financial health.
An in-depth look at the Receivables Turnover Ratio, including its formula, significance in financial analysis, practical examples, and inherent limitations.
