Return on Assets (ROA)
What is Return on Assets (ROA)? The Return on Assets (ROA) ratio assesses how well a company can manage its assets to generate profits over time. Since the main objective of a company's assets is to generate revenue and profits,...
Equity Ratio
What is Equity Ratio? The equity ratio is an accounting ratio. It compares the entire equity in the company to the total assets to determine how much of the assets are financed by the owners' capital. The equity ratio emphasizes...
Interest Coverage Ratio
What is Interest Coverage Ratio? Interest coverage ratio is an accounting ratio. It determines how many times the company can pay off the accumulated interest before taxes and interest are deducted. The ratio is commonly referred to as "times interest...
Debt to Equity Ratio
What is Debt to Equity Ratio? The debt to equity ratio compares a company's total debt to its total equity to determine the riskiness of its financial structure. The ratio displays the proportions of debt and equity financing used by...
Inventory Turnover Ratio
What is Inventory Turnover Ratio? Inventory turnover ratio is a financial ratio that indicates how many times a company's inventory has been sold and replaced in a given period. The number of days it takes to sell the inventory on...
Practical Insights For Wealth Creation
Our weekly finance newsletter with insights you can use
Your privacy is important to us
Accounts Payable Turnover Ratio
What is an Accounts Payable Turnover Ratio? The accounts payable turnover ratio is a short-term liquidity accounting ratio. It is an indicator that quantifies how quickly a company pays its suppliers. Accounts payable turnover indicates how many times a company's...
Working Capital Turnover Ratio
What is Working Capital Turnover Ratio? The working capital turnover ratio is an accounting ratio that determines how effectively a business utilises its working capital to generate revenue. It is also an activity ratio. Working capital is the operating capital...
Real Estate Investment Trust (REIT)
What is a REIT? Real Estate Investment Trusts are similar to mutual funds. They pool money from multiple investors and use that to buy income-generating real estate properties. REITs manage these assets so that they can earn from capital appreciation...