Reading The Inventory Turnover
Inventory turnover is an efficiency ratio that shows how quickly a company uses up its supply of goods over a given time frame.
While inventory turnover is faster in some industries, such as grocery stores, than in others, such as department stores, comparatively low inventory turnover means that a company has poor sales or too much inventory.
"Mark-to-market" accounting is a way of valuing assets based on how much they could sell for under current market conditions. In recent decades, it has become the standard way to record financial assets on a company's balance sheet.
Accrual accounting is an important method of measuring the performance and position of a company. Learn more on how its used.
The receivables turnover ratio is a measure used to quantify a firm's effectiveness in extending credit as well as collecting debts. Learn more about it here.
Learn more about how day sales outstanding, or DSO, is calculated and used to measure the average number of days a company takes to collect revenue after sales.
Learn more about the costs that go into production.
To spot the signs of earnings manipulation, you need to know the different ways companies can inflate their figures.
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