Turnover Ratios Overview
Asset Turnover Ratio
Asset Turnover Variance by Industry
Why Some Valuable Assets Can't Be Capitalized
Inventory Turnover Ratio
Accounts Receivable Turnover Ratio
Accounts Payable Turnover Ratio
Measuring Turnover Ratios in Days
Cash Conversion Cycle
Return on Assets
Return on Equity
DuPont Model of Return on Equity
Course Review
Course Quiz
Course Description
The tenth lesson of our "Accounting 101" series, “Performance Measurement” equips you with the skills to effectively use financial statement ratios. By understanding how to evaluate a company's financial performance and health through these quantitative measures, you will gain valuable insights into profitability, liquidity, efficiency, and solvency. This knowledge empowers stakeholders to make informed decisions regarding investments, lending, and assessing a company's overall financial well-being, laying a strong foundation for your future endeavors in accounting and finance.
By the end of this course, you will able to answer questions such as:
• How can turnover ratios be used to assess the efficiency of a company’s operations?
• What steps can a company take to speed up its cash conversion cycle?
• What are the implications of the DuPont model of return on equity?
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Key Skills
Efficiency Ratios
Accounts Receivable Turnover
Asset Turnover
Inventory Turnover
Accounts Payable Turnover
Days Sales Outstanding (DSO)
Days Inventory Outstanding (DIO)
Days Payables Outstanding (DPO)
Return on Assets
Return on Equity
Net Profit Margin
Equity Multiplier
DuPont Return on Equity (ROE)
Cash Conversion Cycle
Liquidity
Net Working Capital
