Operational performance ratios measure how different aspects of a company's finances are performing. The fixed-asset turnover ratio, operating cycle ratio and revenue per employee ratio each provide a ...

A company's operating cycle, or cash conversion cycle, shows the length of time it takes a company to buy inventory, convert it into sales and collect the "accounts receivable" revenue from the sales.

Efficiency and operating ratios measure overheads as a percentage of operating revenues or fee income; in effect, they measure how efficiently a company is being operated. They are generally favored ...

“Cash is King” is more than just a cliché; it is a fundamental truth. A company can report billions in profit on its income statement, yet if it runs out of the actual money needed to pay its short ...