Financial Ratios




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1. Shows how effectively inventory is managed during a period.

oyrnitevn vrrntueo

inventory turnover

2. A cash flow calculation that measures the time it takes to convert inventory and other resource inputs into cash.

Acsh Oviennocsr Yeccl

cash conversion cycle

3. The difference between a company’s total sales revenue and variable costs.

Bointitcnrou Gmianr

contribution margin

4. Measures the number of days it will take a company to sell all of its inventory.

Syda Elssa ni Viernynto

Days Sales in Inventory

5. An efficiency ratio that measures a company’s ability to generate sales from its assets.

tasse vetrrnou

asset turnover

6. A financial ratio that measures a company’s ability to pay its current debts with operating income.

Bdet Ercsvei Recgvaeo

Debt Service Coverage

7. Measures a firm’s ability to pay all of its fixed charges or expenses with its income before interest and income taxes.

Eidfx Ehcarg Evreocag

Fixed Charge Coverage

8. Measures how efficiently a company can generate profits from its capital in use.

Rnteru no Aciltap Ldpmyeeo

Return on Capital Employed

9. A coverage ratio that measures the amount of income that can be used to cover interest expenses in the future.

Stemi Nsreitte Erdena

Times Interest Earned

10. Measures the number of days it takes a company to collect cash from its credit sales.

Aysd Aless Nautstindog

Days Sales Outstanding