## How to calculate Interest coverage ratio

Interest coverage ratio measures the creditworthiness of a company by comparing earnings before interest and taxes (EBIT) with the interest. Its a financial ratio that measures company’s ability

## How to calculate return on investment (ROI)

In our last article we have discussed how to calculate total assets turnover ratio to know how effectively company is using its assets to generate sales. To compare

## How to calculate Inventory to net working capital ratio

In our last article we have discussed about inventory turnover ratio to know how effectively the company is managing its stock of goods to make money. In this

## How to calculate total assets turnover ratio -TAT

In our last article we have discussed how to calculate fixed assets turnover ratio. In this article, we wants to measure how well the company has generated sales

## Off balance sheet financing or OBS – How it works

Off balance sheet financing means providing funds to a subsidiary or project company where project’s related assets, liabilities and others are held and not considering it into the

## How to calculate accounts payable turnover ratio

To find out how efficient the company is at paying to its creditors, suppliers or short term obligations, accounts payable turnover ratio is calculated. Accounts payable is a

## How to calculate Fixed assets turnover ratio – FAT

Fixed assets turnover ratio determines how efficiently a company is using it’s fixed assets to generate sales. Its also known as efficiency ratio. Before getting into the calculation

## How to calculate inventory turnover ratio – ITR

Inventory turnover ratio shows how often the company replaces its inventory or how well the company generates revenue out of its stock of goods. This ratio is most

## How to calculate average collection period Ratio – ACP

The average collection period (ACP) of a company refers to the average number of days it takes to convert receivables into cash. It’s also known as days sales

## How to calculate cash flow from investing and financing activities

Statement of cash flow is a reconciliation of the cash flows from the firm’s three sources: operating, investing and financing. Analyzing these activities is extremely important as it