What Does Asset Turnover Mean?
The amount of sales generated for every dollar's worth of assets. It is calculated by dividing sales indollars by assets in dollars.
What Does Quick Ratio Mean?
An indicator of a company's short-term liquidity. The quickratio measures a company's ability to meet its short-term obligations with its most liquid assets. The higher the quick ratio, the better the position of the company.
Thequick ratio is calculated as:
What Does Current Ratio Mean?
A liquidity ratio that measures a company's ability to pay short-termobligations.
The Current Ratio formula is:
What Does Leverage Ratio Mean?
1. Any ratio used to calculate the financial leverage of a companyto get an idea of the company's methods of financing or to measure its ability to meet financial obligations. There are several different ratios, but the mainfactors looked at include debt, equity, assets and interest expenses.
2. A ratio used to measure a company's mix of operating costs, giving an idea of howchanges in output will affect operating income. Fixed and variable costs are the two types of operating costs; depending on the company and the industry, the mixwill differ.
Receivables Turnover Ratio
What Does Receivables Turnover Ratio Mean?
An accounting measure used to quantify a firm's effectiveness inextending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets.