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what is liabilities to asset ratio

What Is Liabilities To Asset Ratio?

By Andrew Stotz

The liability to asset ratio is also known as the debt to asset ratio. It shows the percentage of assets that are being funded by debt.

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what is ebit margin

What Is EBIT Margin?

By Andrew Stotz

EBIT margin stands for Earning Before Interest and Tax margin. This margin helps stakeholders understand the cost of running the firms as well as profitability.

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what is gross profit margin

What Is Gross Profit Margin?

By Andrew Stotz

The gross profit margin compares the difference between the revenue and cost of goods sold, against revenue. It is represented in the form of a percentage and is used to evaluate the company’s financial health.

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what is cash conversion cycle

What Is Cash Conversion Cycle?

By Andrew Stotz

The amount of time it takes a firm to convert its inventory into cash is known as the cash conversion cycle. In other words, it is the time taken for firms to convert their resources into cash.

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what is payables deferral

What Is Payables Deferral?

By Andrew Stotz

The period of time a firm takes to pay back their suppliers or creditors for their material purchases is known as payable deferral.

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what is receivables collection

What Is Receivables Collection?

By Andrew Stotz

The receivable collection period is a period when a firm receives the amount owed by their customers.

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what is inventory conversion

What Is Inventory Conversion?

By Andrew Stotz

The inventory conversion period is the timeframe that encompasses the process of obtaining the raw materials, manufacturing, to selling the product. It helps the firms estimate the timespan between the day raw materials are bought to the day the product is sold.

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what is quick ratio

What Is Quick Ratio

By Andrew Stotz

The quick ratio is a liquidity ratio that measures a firm’s ability to pay its short term liabilities with its most liquid assets.

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what is current ratio

What Is Current Ratio

By Andrew Stotz

The current ratio or working capital ratio is a liquidity ratio that measures a firm’s ability to pay its short term liabilities. Short term liabilities are debts or any obligation that is due within one year.

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what is risk assessment

What Is Risk Assessment?

By Andrew Stotz

Risk assessment is an evaluation method used to understand an investor’s risk rating which helps them come up with a suitable investment strategy to achieve their financial goals.

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