Definition: Asset Coverage Ratio is used to measure the efficiency of the company that how efficiently a company can repay its debt obligation by selling its assets. So from this ratio investors analyze that how much assets a company requires to … [Continue reading] about Definition of Asset Coverage Ratio

## Definition of Accumulated Depreciation to Fixed Assets Ratio

Definition: Accumulated Depreciation to Fixed Assets Ratio is the financial measurement. It is used to calculate the age, value and remaining life of the fixed assets of the company on the company's balance sheet by comparing the total depreciation … [Continue reading] about Definition of Accumulated Depreciation to Fixed Assets Ratio

## Definition of Account Receivable Turnover Ratio

Definition: Account receivable turnover ratio is the efficiency ratio or activity ratio. It is used to measure that how many time a business collect its average accounts receivable during the period. During the year if the company had 30,000 … [Continue reading] about Definition of Account Receivable Turnover Ratio

## Definition of Financial Ratio

Definition: Financial ratios are used to analyze the financial standing of the business. Also for the comparison of different companies in different industries financial ratios use. A mathematical comparison of the financial statement, … [Continue reading] about Definition of Financial Ratio

## Payback Period (PBP) Formula | Example | Calculation | Analysis

Payback Period (Payback Method) Payback period is the financial budgeting method or capital budgeting method. It calculates the required number of days for investment to produce cash flow equal to the original cost of the investment. In other … [Continue reading] about Payback Period (PBP) Formula | Example | Calculation | Analysis