Posted by Professor Cram in Ratios of Asset Management

The total assets turnover ratio measures the use of all assets in terms of sales, by comparing sales with net total assets. This interactive tutorial walks you through the calculations as well as where on the financial statements to find the numbers.

2 Comments »

Posted by Professor Cram in Ratios of Asset Management

The inventory turnover ratio compares sales to inventories, reflecting a company’s ability to convert inventory into cash. This interactive tutorial walks you through the calculations, and shows you where to find the numbers of your financial statements.

1 Comment »

Posted by Professor Cram in Ratios of Asset Management

The fixed assets turnover ratio measures how fixed assets are used to generate sales, by comparing sales to net fixed assets. This interactive tutorial walks you through the calculations as well as where to find the numbers on your financial statements.

1 Comment »

Posted by Professor Cram in Ratios of Asset Management

The days sales outstanding ratio (DSO) gives an indication of how long it takes to collect accounts receivables, comparing outstanding receivables to average daily sales. This tutorial walks you through the calculation as well as where on the financial statements you’d find the numbers.

1 Comment »

Posted by Professor Cram in Ratios of Debt Management

The TIE Ratio shows the ability to pay interest charges out of earnings. (TIE stands for times interest earned.) This interactive tutorial walks you through the calculations, including where to find the numbers on the financial statements.

2 Comments »

Posted by Professor Cram in Ratios of Debt Management

The equity multiplier ratio is the factor by which assets grew from the use of debt. This interactive tutorial walks you through the calculations, including where to find the numbers on the financial statements.

No Comments »

Posted by Professor Cram in Ratios of Debt Management

The EBITDA coverage ratio shows if earnings are able to satisfy all financial obligations including leases and principal payments. (EBITDA is short for earnings before interest, taxes, depreciation, and amortization.) This interactive tutorial walks you through the calculations, including where to find the numbers on the financial statements.

2 Comments »

Posted by Professor Cram in Ratios of Debt Management

The debt to equity ratio indicates how much of a company’s financing is provided through debt as compared to equity. This interactive tutorial walks you through the calculations, including where Total Assets and Total Liabilities are on the Balance Sheet.

6 Comments »

Posted by Professor Cram in Ratios of Debt Management

The debt ratio indicates how much of a company’s assets are provided through debt. This is the proportion of funding that is provided by creditors. This interactive tutorial walks you through the calculations, including where Total Assets and Total Liabilities are on the Balance Sheet.

13 Comments »

Posted by Professor Cram in Ratios of Profitability

Return on equity (ROE) measures profitability related to ownership. Management at Du Pont came up with Return on Equity (Du Pont), an approach that showed that return on equity depends on ROA and the equity multiplier. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the financial statements.

No Comments »