Cash Conversion Cycle

Cash conversion cycle is an important financial ratio as it helps the company in calculating the number of days it takes to convert its accounts receivable and inventories into cash. It is also called Net Operating Cycle and is denoted…

Cash Ratio

Cash ratio is the most liquid financial ratio in accounting. It is used to know if the company has cash and cash equivalent to repay its current obligations. Here, we do not add any stock, prepaid advance payments, marketable securities and accounts receivable to arrive at…

how to cite poems in an essay

Current ratio is the most popular and fundamental financial accounting ratio. It shows the company ability to repay its short term liabilities. It can be calculated by dividing current assets by current liabilities. In order to run business without any cash flow problems,…

write my essay for cheap

Quick ratio is also a very fundamental ratio. It is more liquid ration than the current ratio. In this ratio, we calculate liquid asset which is calculated by subtracting stock/ inventory and advance prepaid payments from the total current assets.…

Day’s Inventory on Hand Ratio

Company needs to be well aware of the number of days it takes to sell its average level of inventories. This helps a lot in maintaining a decent level of inventory in the store and works as a great tool…

Days Payables Outstanding

Days payables outstanding is the activity ratio and it tells us the number of average days a company takes to pay its suppliers for the purchases. It is also known as number of days of payables and is denoted as…

Days Sales Outstanding Ratio

Days sales outstanding is an activity ratio and is used to know the average number of days a company takes to collect the payments from its customers for sales made to them on credit terms. This is also called day’s…

Accounts Payable Turnover Ratio

Company buys products and services from outside parties either on cash and credit. Mostly, the companies purchase these products and services on credit terms with its suppliers. In order to manage working capital cycle, this is of great importance to…