The Concept of Investment Each of you is sure to have a definite idea of the term “investment”. If, however, you are compelled to define this term in a very general way as broadly as possible, the result of these definition efforts of different persons would differ considerably. At this point, you should first note “your” idea […]

## How to Calculate Return on Investment (ROI) Easy Method

How to Calculate Return on Investment (ROI) Return on Investment (ROI) is used to measure the return on an invested amount. This indicator is also popularized by the famous Anglo-Saxon ROI: Return on Investment. Simply enter the word “ROI” on the Internet to understand how commonplace the phrase is. The principle is to determine the […]

## Working Capital Turnover Ratio Analysis

Working Capital Turnover Ratio The working capital turnover ratio indicates a company’s efficiency in using its working capital. The working capital turnover ratio is an activity ratio that measures dollars of revenue generated per dollar of investment in working capital. Working capital is defined as the amount by which current assets exceed current liabilities. You may also […]

## Working Capital Ratio Analysis | Efficiency Ratio

Working Capital Ratio The working capital ratio is similar to the current ratio. It measures a business’s ability to repay its current liabilities with current assets. A working capital ratio of less than 1.0 is a strong indicator that there will be liquidity problems in the future, while a ratio of 2.0 is considered to […]

## Accounts Receivable Turnover Ratio Analysis | Efficiency Ratio

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 generate sales. A very well-organized business has decreased its net investment in assets, and so needs less capital and debt in order to […]