Accounting Ratio
An accounting ratio is a numerical comparison derived from financial statements to evaluate a company’s performance, efficiency, or liquidity. Ratios like profitability, solvency, and liquidity provide insights into strengths and weaknesses, helping stakeholders make informed decisions. They serve as a vital tool for benchmarking and financial analysis.
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Acid-Test Ratio
The acid-test ratio, also called the quick ratio, evaluates a company's short-term liquidity by measuring its ability to pay current…
Accumulated Depreciation
Accumulated depreciation is the total depreciation expense recorded on an asset since its purchase. It reduces the asset's book value…
Accounts Payable Turnover Ratio
The accounts payable turnover ratio measures how quickly a company pays its suppliers within a period. Calculated by dividing net…
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