Financial Management

Before I going to explain Accounts Receivable Turnover Ratio, let me explain the efficiency ratio first. Efficiency Ratios Efficiency ratios measure the capability of a business to use its assets and liabilities to...

Small Business Finances The small business market can be very competitive in more ways than one. The most important thing to realize when running a small business is that it can be...

What is Solvency Ratios: Solvency Ratios is used to measure the capability of a business to fulfill its long-term debts. Furthermore, solvency ratios identify going concern issues and a company's ability to pay...

Liquidity Ratios Liquidity Ratios examine the capability of a company to repay both its current liabilities as they become due along with their long-term liabilities as they become current. In other words, Liquidity...

Financial Ratio Analysis Financial Ratios are mathematical assessments of financial statement accounts.  Financial Ratio Analysis is performed by comparing two items in the financial statements. The resulting ratio can be interpreted in...

Days Sales Outstanding (DSO): Days Sales Outstanding is also called the average collection period or days' sales in receivables, measures the number of days it takes a company to collect cash from...

FINANCIAL STATEMENT ANALYSIS:             Understanding the financial statements of a firm is critical since it is often the only source of information with which we must make investment...