Shareholder investment ratios connect a company’s accounting results with the market value and dividend return of its ordinary shares. The ...
Thursday, June 3, 2010
Sunday, May 23, 2010
Receivables Collection Period: Formula and Interpretation
Last reviewed: July 2026. The receivables collection period estimates the average number of days customers take to pay credit invoices. It...
Friday, May 21, 2010
Quick Ratio: Formula, Interpretation and Limitations
Last reviewed: July 2026. The quick ratio, also called the acid-test ratio, measures whether a business can cover current liabilities usin...
Wednesday, May 19, 2010
Current Ratio: Formula, Interpretation and Worked Examples
Last reviewed: July 2026. The current ratio is a liquidity ratio that compares current assets with current liabilities. It helps an analys...
Tuesday, May 18, 2010
Cash Conversion Cycle: Formula, Example and Improvement
Last reviewed: July 2026. The cash conversion cycle (CCC), also called the cash operating cycle or working capital cycle, estimates how ma...
Saturday, May 15, 2010
Operating Cash Flow Ratios: Formulas and Interpretation
Last reviewed: July 2026. Cash-flow ratios compare cash generated by a business with liabilities, revenue, profit, investment or financing...
Sunday, May 9, 2010
Capital Gearing Ratio: Formula, Interpretation and Example
The capital gearing ratio measures the relationship between debt or other fixed-return finance and shareholders’ equity. It helps users ass...
Wednesday, May 5, 2010
Debt Ratio: Formula, Interpretation and Worked Example
The debt ratio measures how much of an entity’s asset base is financed by liabilities or by a defined category of interest-bearing debt. Be...
Thursday, April 29, 2010
Profitability Ratios and ROCE: Formulas and Analysis
Last reviewed: July 2026. Profitability ratios assess how effectively a business converts revenue, assets and long-term financing into pro...
Tuesday, April 27, 2010
Accounting Ratio Analysis: Formulas, Examples & Interpretation
Last reviewed: July 2026. Accounting ratio analysis converts financial-statement figures into relationships that help users evaluate prof...