Working Capital Management Analysis ~ Key Ratios to be considered

Cash Flow Cycle, Working Capital, Finance, Management , Capital Budgeting, Accounts, Receivables, Inventory, Payables,

Here are the Key ratios which needs analysis when looking at the Balance Sheet , P&L of a company when trying to get a perspective on the Working Capital efficiency of a company and it’s competitors. 

Current Asset / Total Asset %
Current Asset/ Sales %
Debt/Asset Times
quick ratio or  acid-test Times
Turnover of Cash and Sec Times
Inventory Turnover (Sales/Invntry) Times
Days Sales in Inventory (DSI) Days
Days sales outstanding (DSO) Days
Days payable outstanding (DPO) Days
Gross operating cycle(DSI+DSO) Days
Net operating cycle (ccc) Days
FA turnover (Sales/FA) Times
Total Assets Turnover (Sales/Asset) Times
Profit Margin Percent
ROI Percent
Leverage (Total Asset/Equity) Times
ROE Percent

More later…. Other information on Financial Analysis

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