Efficiency Ratios

Cash Turnover: Measures how effective a company is utilizing its cash. Formula: Net Sales Cash Sales to Working Capital (Net Working Capital Turnover): Indicates the turnover in working capital per year. A low ratio indicates inefficiency, while a high level implies that the company’s working capital is working too hard. Formula: Net Sales Average Working […]

How To Calculate Wealth

Wealth measures the value of all the assets of worth owned by a person, community, company or country. Wealth is determined by taking the total market value of all physical and intangible assets owned, then subtracting all debts. How to Calculate Your Net Worth: Make a list of all of your assets: This includes retirement savings, your current checking […]