Knowledge with investing

Profitability Ratios- Analyzing An Income Statement

Profitability reflects the final result of a company’s business operations. Profitability ratios are also called income statement ratios since most of the items used in their calculations are picked up from the income statement. Profit margin ratios and rate of return ratios are the most commonly used profitability ratios. A comparison of profitability ratios with other competitors…

Financial Ratios
Stock Graphs

Receivable Turnover Ratio

  The receivable turnover ratio is generally used by banks and creditors. Receivables are current assets which are expected to be converted into cash during the next business cycle. Receivable turnover ratio measures the effectiveness of company’s receivable collection policy. In other words, it indicates how many times the receivables are converted into cash in a…

Financial Ratios