Cash Turnover Ratio

Cash Turnover = (cost of sales {excluding depreciation}) / cash. Cash Turnover Ratio = (365 days)/ cash balance ratio. Cash turnover ratio definition and explanation: The cash turnover ratio indicates the number of times that cash turns over in a

Cash Reinvestment Ratio

Cash Reinvestment Ratio = increases in fixed assets and working capital / (net income + depreciation). Cash reinvestment ratio definition and explanation: This ratio indicates the degree to which net income is absorbed (reinvested) in the business. A cash reinvestment

Cash Maturity Coverage Ratio

Cash Maturity Coverage = (cash flow from operations – dividends) / current portion of long term maturities. Cash maturity coverage ratio definition and explanation: The cash maturity coverage ratio indicates the ability to repay long term maturities as they mature.

Cash Dividend Coverage Ratio

Cash Dividend Coverage = (cash flow from operations) / dividends. Cash dividend coverage ratio definition and explanation: The cash dividend coverage ratio reflects the company’s ability to meet dividends from operating cash flow. A cash dividend coverage ratio of less

Cash Breakeven Point

Cash Breakeven Point = (fixed costs – depreciation) / contribution margin per unit. Cash breakeven point definition and explanation: The cash breakeven point indicates the minimum amount of sales required to contribute to a positive cash flow. The cash breakeven

Breakeven Point

Formula to calculate breakeven point: Breakeven Point = fixed costs / contribution margin. Breakeven point definition and explanation: The breakeven point is the point at which a business breaks even (incurs neither a profit nor a loss) The breakeven point

Average Obligation Period Ratio

Formula to calculate average obligation period: Average Obligation Period = accounts payable / average daily purchases. Average obligation period definition and explantion: The average obligation period ratio measures the extent to which accounts payable represents current obligations (rather than overdue

EBIT to Sales Ratio

Formula to calculate ebit to sales ratio: EBIT to Sales = (earnings before interest and taxes) / sales. EBIT to sales ratio definition and explanation: The EBIT to sales ratio determines whether the fixed costs are too high for the

Debt Service Coverage Ratio

Formula to calculate debt service coverage ratio: Debt Service Coverage Ratio = net operating income / (interest + current portion of LTD) Debt service coverage ratio definition and explanation: The debt service coverage ratio is also known as the debt