Accounting Tools

OCTOBER 28, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is Capital Turnover? Capital turnover compares the annual sales of a business to the total amount of its stockholders' equity. Given the issues described, valid usage of the capital turnover concept is certainly limited.

Financial Statements 40

Financial Statements 40

Accounting Tools

SEPTEMBER 11, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is the Cash Flow Adequacy Ratio? The cash flow adequacy ratio is used to determine whether the cash flows generated by the operations of a business are sufficient to pay for its other ongoing expenses.

Financial Statements 75

Financial Statements 75

Accounting Tools

OCTOBER 19, 2023

Related Courses Business Ratios Guidebook Treasurer's Guidebook Working Capital Management What is the Sales to Working Capital Ratio? Thus, there is typically a ratio of working capital to sales that remains relatively constant in a business, even as sales levels change.

Accounts Payable 40

Accounts Payable Accounts Payable Accounts Receivable Accounts Receivable 40

Accounting Tools

OCTOBER 6, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is the Investment Turnover Ratio? The investment turnover ratio compares the revenues produced by a business to its debt and equity. How to Calculate the Investment Turnover Ratio?

Financial Statements 40

Financial Statements 40

Accounting Tools

JUNE 14, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is the Cash Turnover Ratio? The cash turnover ratio is used to determine the proportion of cash required to generate sales. This means the cash turnover ratio of the organization was 10x per year.

Financial Statements 40

Financial Statements Budgeting 40

Accounting Tools

DECEMBER 10, 2023

What is the Accounts Receivable Turnover Ratio? Accounts receivable turnover is the number of times per year that a business collects its average accounts receivable. The ratio is used to evaluate the ability of a company to efficiently issue credit to its customers and collect funds from them in a timely manner.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Accounting 40

Accounting Tools

DECEMBER 30, 2023

What is the Sales to Total Assets Ratio? The sales to total assets ratio measures the ability of a business to generate sales on as small a base of assets as possible. When the ratio is quite high, it implies that management is able to wring the most possible use out of a small investment in assets.

Financial Statements 40

Financial Statements 40

Accounting Tools

OCTOBER 14, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements Working Capital Management What is Working Capital Productivity? The working capital productivity measurement compares sales to working capital.

Financial Statements 40

Financial Statements Accounts Payable Accounts Payable Accounts Receivable 40

Accounting Tools

JULY 30, 2023

Related Courses Business Ratios Guidebook Treasurer's Guidebook Working Capital Management What is the Net Working Capital Ratio? The net working capital ratio is the net amount of all elements of working capital.

Accounts Payable 40

Accounts Payable Accounts Payable Accounts Receivable Accounts Receivable 40

Accounting Tools

OCTOBER 13, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements Working Capital Management What is the Working Capital Ratio? The working capital ratio is a measure of liquidity , revealing whether a business can pay its obligations. What is Working Capital?

Financial Statements 40

Financial Statements Accounts Payable Accounts Payable Accounts Receivable 40

Accounting Tools

JUNE 15, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is the Cash Ratio? The cash ratio compares a company's most liquid assets to its current liabilities. This ratio may be too conservative, especially if receivables are readily convertible into cash within a short period of time.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Financial Statements 40

Accounting Tools

JULY 27, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is the Collection Ratio? The collection ratio is the average period of time that an organization’s trade accounts receivable are outstanding. The formula for the collection ratio is to divide total receivables by average daily sales.

Collections 40

Collections Financial Statements Accounts Receivable Accounts Receivable 40

Accounting Tools

MAY 19, 2023

Related Courses Business Ratios Guidebook Key Performance Indicators The Interpretation of Financial Statements What are Activity Ratios? Activity ratios measure how well an organization uses its assets to generate revenue. The most common activity ratios are noted below.

Accounts Payable 40

Accounts Payable Accounts Payable Financial Statements Collections 40

Accounting Tools

JUNE 21, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements Payables Management What is the Accounts Payable Days Formula? The formula is: Total supplier purchases ÷ ((Beginning accounts payable + Ending accounts payable) / 2) This formula reveals the total accounts payable turnover. times during the past year.

Accounts Payable 40

Accounts Payable Accounts Payable Accounting Accounting 40

Accounting Tools

OCTOBER 19, 2023

Related Courses Business Ratios Guidebook Treasurer's Guidebook Working Capital Management What is the Liquidity Index? Related Articles Defensive Interval Ratio Degree of Relative Liquidity Doomsday Ratio Net Working Capital Ratio Solvency Ratio Working Capital Turnover Ratio

Collections 40

Collections Billing 40

Accounting Tools

FEBRUARY 9, 2024

What is Working Capital? Working capital is the amount of an entity's current assets minus its current liabilities. A strongly positive working capital balance indicates robust financial strength, while negative working capital is considered an indicator of impending bankruptcy.

Accounts Payable 40

Accounts Payable Accounts Payable Accounts Receivable Accounts Receivable 40

Accounting Tools

SEPTEMBER 9, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is Sales per Person? The measure can be easily skewed by shifting work to contractors , by outsourcing work entirely, or by imposing more overtime on a smaller number of employees. Thus, the net headcount is 53 positions.

Financial Statements 40

Financial Statements 40

Accounting Tools

OCTOBER 14, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is the Operating Assets Ratio? The operating assets ratio can be used as part of an analysis to eliminate those company assets that are not contributing to operations.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Financial Statements 40

Accounting Tools

FEBRUARY 13, 2024

Days' sales uncollected is a liquidity ratio that is used to estimate the number of days before receivables will be collected. Related Articles Accounts Receivable Collection Period Accounts Receivable Days Accounts Receivable Turnover Ratio Average Collection Period Collection Ratio

Collections 40

Collections Accounts Receivable Accounts Receivable Account Receivables 40

Accounting Tools

JUNE 18, 2023

Related Courses Business Ratios Guidebook Credit and Collection Guidebook The Interpretation of Financial Statements What is the Accounts Receivable Collection Period? Related Articles Accounts Receivable Days Accounts Receivable Turnover Ratio Liquidity Index Working Capital Ratio Working Capital Turnover Ratio

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Collections 40

Accounting Tools

JULY 16, 2023

Related Courses Business Ratios Guidebook Payables Management The Interpretation of Financial Statements What is Days Payable Outstanding? A high result is generally considered to represent good cash management, since a business is holding onto its cash for as long as possible, thereby decreasing its investment in working capital.

Accounts Payable 40

Accounts Payable Accounts Payable Financial Statements Accounting 40

Nanonets

MAY 8, 2023

Schedule a Demo Benefits of Accounts Receivable Accounts receivable are an important part of any business, as they provide a source of working capital. Accounts receivable can be used as loan collateral, providing the company with much-needed capital. In addition to the benefits of working capital, it can also improve sales.

Accounts Receivable 52

Accounts Receivable Accounts Receivable Account Receivables AR 52

Accounting Tools

JULY 24, 2023

Another option is to accelerate the turnover of receivables and/or inventory. Doing so minimizes the need for working capital financing, which would otherwise increase in concert with an expanded sales level. Dividend payout ratio) = 0.20 Related Articles How to Calculate Market Share Organic Growth What is Run Rate?

Financial Analysis 40

Financial Analysis Financial Statements Budgeting 40

Accounting Tools

JUNE 14, 2023

Related Courses Accounting for Inventory Business Ratios Guidebook Inventory Management What is Days’ Sales in Inventory? The days' sales in inventory figure is intended for the use of an outside financial analyst who is using ratio analysis to estimate the performance of a company.

Accounting 40

Accounting Accounting 40

Counto

JANUARY 16, 2024

Winning such grants can elevate the visibility of a business, garnering recognition and signalling to others that your work is noteworthy. Key startup grants in Singapore Grant name Level of Support Eligibility Startup SG Founder Guidance and a startup capital grant amounting to SGD 50,000. Have a minimum paid-up capital of $50,000.

Collections 52

Collections Accounting Accounting 52

Accounting Tools

SEPTEMBER 10, 2023

Related Courses Business Ratios Guidebook The Interpretation of Financial Statements What is the Quick Ratio? The quick ratio is used to evaluate whether a business has enough liquid assets that can be converted into cash to pay its bills. What is Included in the Quick Ratio? Marketable securities. Accrued liabilities.

Accounts Receivable 40

Accounts Receivable Accounts Receivable Account Receivables Financial Statements 40

Accounting Tools

AUGUST 6, 2023

Related Courses Accounting for Inventory Business Ratios Guidebook Inventory Management What is Inventory Turnover? Inventory turnover is the average number of times in a year that a business sells and replaces its inventory.

Purchase Order 40

Purchase Order Budgeting Collections Accounting 40

Accounting Tools

JULY 14, 2023

By doing so, they can strip some working capital out of the acquirees , thereby reducing the amount of the initial acquisition cost. Related Articles Accounts Receivable Collection Period Accounts Receivable Days Accounts Receivable Turnover Ratio Collection Ratio Days Sales Uncollected Liquidity Index

Collections 40

Collections Accounts Receivable Accounts Receivable Account Receivables 40

Accounting Tools

SEPTEMBER 20, 2023

This line item includes all raw materials , work-in-process , and finished goods owned by the business. This line item includes all fixed assets that have been capitalized by the business, such as land, buildings, equipment, vehicles, software, and leasehold improvements. Additional paid-in capital. Fixed assets.

General Ledger 40

General Ledger Financial Statements Billing Accounts Payable 40

Accounting Tools

FEBRUARY 25, 2024

What are Solvency Ratios? Solvency ratios allow you to discern the ability of a business to remain solvent over the long term. Solvency ratios are commonly used by lenders and in-house credit departments to determine the ability of customers to pay back their debts. A ratio of 2:1 is considered reasonable.

Financial Statements 74

Financial Statements Billing Budgeting Collections 74

Accounting Tools

SEPTEMBER 11, 2023

Related Courses Business Ratios Guidebook Financial Analysis Education Bundle The Interpretation of Financial Statements What is Financial Statement Analysis? Proportion Analysis An array of ratios are available for discerning the relationship between the size of various accounts in the financial statements. Cash coverage ratio.

Financial Statements 40

Financial Statements Financial Analysis Accounts Receivable Accounts Receivable 40

Accounting Tools

APRIL 9, 2024

What is the Operating Ratio? The operating ratio compares production and administrative expenses to net sales. The ratio reveals the cost per sales dollar of operating a business. A low ratio in comparison to that of competitors indicates that management is doing a good job of keeping costs in line.

Financial Statements 40

Financial Statements Tax 40

Accounting Tools

NOVEMBER 7, 2023

Advantages of the Altman Z Score This approach to evaluating organizations is better than using just a single ratio, since it brings together the effects of multiple items - assets, profits, and market value. Related Articles Bad Debt Forecast Collection Dispute Cycle Time Collection Effectiveness Index Debtor Days Calculation

Collections 75

Collections Financial Statements Tax 75