The Operating Ratios
Study of The Financial Ratios: The Operating Ratios
The Operating Ratio, which is also known as the "Activity Ratio," shows how well a company can turn its present and long-term assets into cash flow. We can use this number to figure out how well the company is being run. Because of this, Operating Ratios are also known as "Management Ratios."
Some of the popular Operating Ratios are:
- Fixed Assets Turnover Ratio
- Working Capital Turnover Ratio
- Total Assets Turnover Ratio
- Inventory Turnover Ratio
- Inventory Number of Days
- Receivable Turnover Ratio
- Days Sales Outstanding (DSO)
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Table of Contents: Study of The Financial Ratios 1. Introduction of the Financial Ratios |
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