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Current Assets to Proprietor's Fund Ratio: Current Assets to Proprietors' Fund Ratio establishes the relationship between current assets and shareholder's funds. The purpose of this ratio is to calculate the…
Creditors / Accounts Payable Turnover Ratio: Definition and Explanation: Credit turnover ratio is similar to the debtors turnover ratio. It compares creditors with the total credit purchases. It signifies the credit…
Definition and Explanation of Horizontal or Trend Analysis: Comparison of two or more year's financial data is known as horizontal analysis or trend analysis. Horizontal analysis is facilitated by showing changes between years in both dollar and…
Financial Statement Analysis Learning Objectives: Prepare and interpret financial statements in comparative and common-size form. Compute and interpret financial ratios that would be most useful to a common stock holder.…
Generally Accepted Accounting Principles (GAAP): Generally accepted accounting principles (GAAP) are those principles that have substantial authoritative support. The AICPA's code of professional conduct requires that members prepare financial statements…
Fixed Assets Turnover Ratio: Definition: Fixed assets turnover ratio is also known as sales to fixed assets ratio. This ratio measures the efficiency and profit earning capacity of the concern.…
Fixed Assets to Proprietor's Fund Ratio: Definition: Fixed assets to proprietor's fund ratio establishes the relationship between fixed assets and shareholders funds. The purpose of this ratio is to indicate…
Accounting Ratios | Financial Ratios: Learning Objectives: Define and explain the term accounting ratios. What are advantages and limitations of using accounting or financial ratios. How financial ratios are classified.…
Financial Accounting Ratios and Formulas: This is a collection of financial ratio formulas which can help you calculate financial ratios in a given problem. Analysis of Profitability: General profitability: Gross…
In this article we will discuss how to calculate expense ratio in insurance and total expense ratios meaning with calculation with ratio formula Definition: Expense ratios indicate the relationship of…
Proprietary Ratio or Equity Ratio: Definition: This is a variant of the debt-to-equity ratio. It is also known as equity ratio or net worth to total assets ratio. This ratio…
Debtors Turnover Ratio | Accounts Receivable Turnover Ratio: A concern may sell goods on cash as well as on credit. Credit is one of the important elements of sales promotion.…
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