Inventory Turnover Ratio: Formula, Analysis, Limitations

Inventory Turnover Ratio

The inventory turnover ratio is a common measure of the firm’s operational efficiency in the management of its assets. As noted earlier, minimizing inventory holdings reduces overhead costs and, hence, improves the profitability performance of the enterprise. Ideally the inventory turnover ratio would be calculated as units sold divided by units on hand. If you … Read more

Debt Ratio – Debt service coverage Ratio: Meaning, Formula

Debt Ratio

Debt Ratio is one of the financial ratios which compares an entity’s total amount of debt to its total amount of assets, which is used to gain a general idea as to the amount of leverage being used by a entity. Know more about Debt service coverage Ratio from below. If you like this article … Read more