Delve into the World of Accounting with these 10 Mesmerizing KPIs

🔍 1. Accounts Receivable Turnover 🔍

See how quickly a company collects money from customers who owe them. It’s like counting how many times they get paid in a year.

Formula: Total Sales / Average Money Owed by Customers

🧾 2. Accounts Payable Turnover 🧾

Find out how fast a company pays its suppliers. It’s like checking how quickly they settle their bills.

Formula: Total Purchases from Suppliers / Average Money Owed to Suppliers

💼 3. Working Capital Ratio 💼

Check if a company has enough money to pay its short-term bills. It’s like seeing if they have money to cover their everyday expenses.

Formula: Money Available for Daily Use / Short-term Bills

📊 4. Debt-to-Equity Ratio 📊

Compare how much money a company borrowed versus how much its owners invested. It’s like understanding their financial borrowing mix.

Formula: Total Debt / Total Investment from Owners

💰 5. Gross Profit Margin 💰

See how much money a company keeps after making and selling its products. It’s like knowing how much they earn from what they sell.

Formula: (Total Revenue — Cost of Goods Sold) / Total Revenue

💼 6. Net Profit Margin 💼

Measure how much profit a company makes from its total revenue. It’s like finding out their earnings after all expenses.

Formula: Net Income / Total Revenue

🚀 7. Return on Assets (ROA) 🚀

Understand how efficiently a company uses its assets to make money. It’s like seeing how well they use their resources.

Formula: Net Income / Total Assets

🌄 8. Return on Equity (ROE) 🌄

See how much profit a company generates with the money its owners invested. It’s like knowing the return on their investment.

Formula: Net Income / Total Equity

📦 9. Inventory Turnover 📦

Count how many times a company sells and replaces its inventory in a year. It’s like knowing how fast they sell their products.

Formula: Cost of Goods Sold / Average Inventory

🏢 10. Fixed Asset Turnover 🏢

Measure how effectively a company uses its fixed assets (like buildings and machinery) to generate sales. It’s like seeing how productive their big investments are.

Formula: Total Sales / Value of Fixed Assets

Step into the world of accounting KPIs, where these simple measures help businesses thrive and grow! 🌠📚✨

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