Financial Ratios and Metrics

These flashcards cover key concepts related to financial ratios and metrics important for assessing company performance.

Accounts Receivable Turnover

Measures the efficiency of collecting outstanding customer payments.

Average Collection Period

Measures the average number of days a company takes to collect payments on its credit sales.

Accounts Payable Turnover

Measures how quickly a company pays off what it owes to suppliers.

Days to Pay Suppliers

Shows the average number of days the company takes to pay its suppliers.

Cost of Goods Sold (COGS)

The direct costs attributable to the production of the goods sold in a company.

Inventory Turnover

Measures how fast inventory flows through a company.

Days Sales in Inventory

The average number of days to sell the company’s entire inventory.