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.