Activity or Operation Ratios Concept Activity or operation ratios form a type of economical-financial indicators that seek to measure the efficiency level in the company’s assets management. Usually activity ratios assume the form of rotation ratios (which represent the number of times that an asset transforms in sales on a certain period of time) or […]

Assets Rotation Ratio Concept Assets rotation ratio or indicator is an activity ratio that seeks to measure the efficiency level with which the company is using its assets. The higher the assets rotation ratio value, bigger the efficiency with which the company is creating sales. Assets rotation ratio is calculated by the division of the […]

Clients Rotation Ratio Concept Clients rotation ratio or indicator is an activity ratio that seeks to measure the efficiency level with which the company is managing its clients’ credit policy. The higher the clients rotation ratio value, bigger the efficiency of the credit policy. Clients’ rotation ratio is calculated by the division of the total […]

Financial Resources Concept: Financial resources of an organization represent the monetary means detained by that same…

Net Result Concept Net Result designates the residual result that the company detains on a certain period after deducted the gains (or profits) all expenses (or losses), either being expenses with merchandise purchases, materials and services, expenses with personnel, equipments attrition, funding financial costs, taxes, among others. The use given to the net result can […]

Profitability Concept: Profitability is one of the analyzed variable by the economical and financial analyses and represents the return rate (or income) of…

Presentation of the American Federal Reserve: American Federal Reserve or Federal Reserve System (also known as “Fed”) is the United States of America central bank…

ROI Concept: The term ROI (English acronym of return on investment) is a profitability indicator widely used in the…

Stocks Rotation Ratio Concept Stocks rotation ratio or indicator is an activity ratio that seeks to measure the efficiency level with which the company is making its management of materials in stock. The higher the clients rotation ratio value, bigger the efficiency of the stocks management. Stocks rotation ratio is calculated by the division of […]