We go into business to make money, so wouldn’t you want to know how much money you’re making? That’s why calculating net profit margin can be so useful. Net profit margin lets you see exactly how much money your business is making after all related expenses have been taken into account.
If your company has no debt requiring an interest payment, the cash coverage ratio is not useful. However, for those of you carrying debt with interest expense, it can be extremely useful.
The cash coverage ratio is an accounting ratio that is used to measure the ability of...
Days sales outstanding (DSO) measures the average number of days it takes a business to collect payment from their customers. Similar to the accounts receivable turnover ratio, the DSO ratio can be measured monthly, quarterly, or annually, depending on the volume of credit sales your company has.