Activity Ratios
Activity ratios help investors evaluate a firm’s ability to effectively and efficiently manage its operations and assets. The most commonly used activity ratios include:
- Inventory turnover/Days inventory on hand
- Accounts receivable turnover/Days sales outsanding
- Accounts payable turnover/Days payable
- The cash cycle
- Asset turnover
The Intelligent Investor: The Classic Text on Value Investing
Financial Statement Analysis: A Practitioner's Guide, 3rd Edition
Managing Investment Portfolios: A Dynamic Process (CFA Institute Investment Series)
[...] « Accounts Receivable Turnover and Days Sales Outstanding Activity Ratios [...]
February 8th, 2007 at 9:29 am
[...] activity ratios - Days on Hand, Days Sales Outstanding, and Days Payable - can be combined to demonstrate how well [...]
February 8th, 2007 at 12:57 pm
[...] financing requirements a company faces. Without inventory there can be no sales, etc. Most of the activity ratios focus on these working capital [...]
February 8th, 2007 at 12:58 pm