Working capital is a crucial ingredient to running a small business. It is the money a business has available to spend on its operations after paying off its bills and short-term debts. The working ...

Working capital is the amount of money a company has available in short-term liquid assets. It determines a company’s immediate liquidity and is often used to manage cash flow and for other forms of ...

Businesses are always eager to know if they are profitable. To stay on top of profitability, they will assess ways to improve efficiency, reduce costs, incentivize employees and optimize operations to ...

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 ...

A key part of running a successful small business is using your assets efficiently. The total asset turnover and the capital intensity ratio are two closely related financial ratios that show how well ...

One of the key traits of a financially sound firm is its efficiency in utilising its investments/capital. Investment utilisation ratios such as asset turnover, working capital turn, fixed asset turn ...

Working capital productivity compares an organization's sales with its working capital, as a measure of efficiency. If sales increase more rapidly than the funds needed to generate them, it shows that ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

What Is the Fixed Asset Turnover Ratio? The fixed asset turnover ratio (FAT) is, in general, used by analysts to measure operating performance. This efficiency ratio compares net sales (income ...