Category: Ratio Analysis
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How To Calculate The Benefit Cost Ratio Of A Project (With Example)
What is Benefit Cost Ratio (BCR) Benefit Cost Ratio (BCR) is defined as a ratio between a project’s proposed total cash benefit to it’s planned total cost. Benefit Cost Ratio is used to determine the profitability of a project. The expenses, overall duration and revenue generated by the project are the main factors on which…
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How To Increase The Accounts Receivable Turnover Of A Company
What is Accounts Receivable Turnover Accounts receivable turnover is a ratio that is used to determine if a company is actually receiving the cash or cash equivalent in their bank account after selling their products / services. Accountants and analysts use accounts receivable turnover to determine how well a company collects on the credit it…
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How To Calculate Price To Earning (PE) Ratio Of A Stock
What is a Price To Earning Ratio Price to Earning, commonly referred to as the PE ratio, is a financial ratio used to check the fundamental value of a stock. A Price to Earning ratio will tell the investor how much he is willing to pay for the business to earn Rs. 1/- from it.…
