Financial

Ratios
Ratios are tools used
for financial statement
analysis.
 The balance sheet reports
assets, liabilities, and equity,
while the income statement
reports revenues and expenses
that net to a profit or loss.
 Current Ratio
The current ratio is a liquidity ratio that
measures a company's ability to pay
short-term obligations or those due within
one year. It tells investors and analysts
how a company can maximize the current
assets on its balance sheet to satisfy its
current debt and other payables.
 Receivable Turnover
The receivable turnover tells how many
a collection cycle is compared or done
within one year or one operating year.

Measures how efficiently a company is

collecting revenue – and by extension,
how efficiently it is using its assets.