Effectively an organization uses the capital

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Unformatted text preview: ures how effectively an organization uses the capital contributed by equity investors (excludes preferred stock) Measures the percentage of net income paid out as dividends Asset Utilization Ratio Formulas ⁄ Used to measure the amount of ti me it takes or how efficiently assets are turned into cash Measures the number of times per year the balance of receivables is collected and shows how efficient an organization is in collections Measures the average number of days it takes from the time a sale is made until cash is collected Measures the number of times per year the balance of inventory is output as cost of sales and shows how efficient an organization is in managing its inventory ⁄ Liquidity Ratio Formulas Debt Utilization Ratio Formulas Market Ratio Formulas ( ) Measures the average number of days it takes from the time raw material is received until a finished good is output Measures how effective an organization is at using its fixed assets to generate sales (note that...
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