Financial Statement Analysis

how often accounts payable are paid, on average, within a year

how often accounts receivable are converted into cash, on average, within a year

ratio that measures the effectiveness of a business's asset utilization to generate revenue

number of days, on average, it takes a business to collect cash from sales on account

ratio that measures the ability of a business entity to pay its current liabilities by dividing current assets by current liabilities

ratio used to measure how a company has financed its business through debt, stockholders’ equity, or a combination of both

amount measuring the extent of earnings being distributed to shareholders

amount of net income per outstanding common share

number of times a business entity sells and replaces its inventory, on average, within a year

ability to convert assets into cash

number of days it takes a business to sell its inventory, on average

ratio that measures the market price of a common stock at a certain date compared to the earnings per share

ratio measuring the ability to use highly liquid assets to pay current liabilities

profit generated using the funds stockholders have invested

efficiency of a business to utilize assets to generate profits

ratio that measures how many times the business entity's operating income can cover its interest expense

current assets minus current liabilities, which can help determine the business entity's ability to pay current liabilities