Operating Cash Flow Margin is a ratio that measures the percentage of a company’s operating cash flow that is available to service its debt obligations. The operating cash flow margin is calculated by dividing a company’s operating cash flow by its total debt. A company with a higher operating cash flow margin is considered to … Read more
The funds from operations to total debt ratio is a financial ratio that measures a company’s ability to cover its total debt obligations with its funds from operations. This ratio is important because it provides insight into a company’s financial health and its ability to meet its debt obligations. This ratio is calculated by dividing … Read more
The fixed asset turnover ratio is a financial ratio that measures the efficiency of a company’s use of its fixed assets. The fixed asset turnover ratio is calculated by dividing a company’s sales by its fixed assets. A high fixed asset turnover ratio indicates that a company is using its fixed assets efficiently to generate … Read more
Advertising-To-Sales Ratio is a financial ratio that measures the percentage of a company’s sales that are attributable to advertising. This ratio can be used to evaluate the effectiveness of a company’s advertising expenditures. A higher advertising-to-sales ratio indicates that a greater proportion of the company’s sales are generated by advertising. What does EPS stand for … Read more
Effective duration is a measure of a bond’s price sensitivity to changes in interest rates. It is used to estimate the price change of a bond in response to a interest rate change. The higher the effective duration, the more sensitive the bond’s price is to changes in interest rates. The effective duration of a … Read more
There are several common types of profitability ratios, each of which measures different aspects of profitability.. What Are Profitability Ratios? Profitability ratios are a type of financial ratio that businesses use to measure their profitability. There are several different types of profitability ratios, but some of the most common include gross margin, operating margin, and … Read more
Activity ratios are financial ratios that measure a company’s ability to convert different accounts within its balance sheet into cash or sales. The three most common activity ratios are the inventory turnover ratio, the receivables turnover ratio, and the payables turnover ratio. The inventory turnover ratio measures a company’s ability to turn its inventory into … Read more
