The efficiency ratio is an indication of a company’s financial health. It analyzes how efficiently a company uses its assets and liabilities internally. However, at times, it becomes difficult to ...

The number of times a business sells and replaces its stock over a given time period is its inventory turnover ratio. The inventory turnover ratio, also sometimes called stock turns or inventory turns ...

Several major retailers in the U.S. use a century-old accounting practice known as “the retail inventory method,” which relies on retail prices to estimate inventory, even though it fails to take full ...

Effective cash-flow management is crucial for any business. For companies that rely on inventory, such as e-commerce retailers and wholesale distributors, working capital turnover is a critical lever ...

Discover key elements that reduce operating cash flow, including declining net income, inefficient inventory turnover, and ...