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For a corporation with a published balance sheet there are various ratios used to calculate a measure of liquidity. [1] These include the following: [2] The current ratio is the simplest measure and calculated by dividing the total current assets by the total current liabilities. A value of over 100% is normal in a non-banking corporation.
Receivable turnover ratio or debtor's turnover ratio is an accounting measure used to measure how effective a company is in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets .
Looked at simply, there are two methods to calculate the utilization rate. The first method calculates the number of billable hours divided by the number of hours recorded in a particular time period. For example, if 40 hours of time is recorded in a week but only 30 hours of that was billable, the utilization rate would then be 30 / 40 = 75%.
You’ll find the current ratio with other liquidity ratios. General Electric’s (GE) current assets in December 2021 were $65.5 billion; its current liabilities were $51.95 billion, making its ...
Your debt-to-income ratio (DTI) is your total monthly debt payments divided by your total gross monthly income. It helps lenders determine your approval odds and the likelihood of you being able ...
The Global Competitiveness Report (GCR) [1] was a yearly report published by the World Economic Forum. Between 2004 and 2020, [ 2 ] the Global Competitiveness Report ranked countries based on the Global Competitiveness Index , [ 1 ] developed by Xavier Sala-i-Martin and Elsa V. Artadi . [ 3 ]
How to calculate debt-service coverage ratio. ... As an example, let’s say that your business has an annual net operating income of $100,000, with a total debt service of $50,000. In that case ...
Debtor collection period = Average debtors / Credit sales × (average debtors = debtors at the beginning of the year + debtors at the end of the year, divided by 2 or Debtors + Bills Receivables) The average collection period (ACP) is the time taken by businesses to convert their accounts receivable (AR) to cash.