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The asset turnover ratio is a measure of how efficiently a company's assets generate revenue. It measures the number of dollars of revenue generated by one dollar of the company's assets.
The asset turnover ratio measures how efficiently a company generates sales from its assets. In other words, it is the value of sales that it earns for each dollar of owned assets.
The receivables turnover ratio is a company's sales made on credit as a percentage of average accounts receivable.
DuPont analysis examines the return on equity (ROE) analyzing profit margin, total asset turnover, and financial leverage.
This acid test ratio explanation walks you through this financial ratio's pros & cons, how to use the formula, and acid test ratio interpretation.
Activity ratios assess how effectively a company is able to generate revenue in the form of cash and sales based on its asset, liability and capital share accounts. Examples of such ratios include the inventory turnover ratio and the accounts receivable turnover ratio.
The DuPont identity breaks down return on equity (ROE) into its components -- profit margin, total asset turnover, and financial leverage -- so that each…
What is ROA? This financial definition walks you through using the ROA formula, return on assets ratio interpretation, and when you shouldn’t use it.
What Is the Accounts Receivable Turnover Ratio? The accounts receivable turnover ratio is used to assess how well a company collects payment from its customers. Collecting accounts receivable on time is important because companies need cash to pay for their own operations.
What does quick ratio mean? With this comprehensive quick ratio definition, you'll learn the difference between a good quick ratio and a bad one.