Accounts receivable turnover ratio measure of time a company takes to – turn its accounts receivable into cash, calculated by dividing sales by the average value of accounts receivable for a period Debt ratios ratios that measure a reliance on debt financing of its – firm’s operations (sometimes called leverage ratios) Debt to equity ratio measure of the extent to which a business is – financed by debt as opposed to invested capital, calculated by dividing the total liabilities by equity company’s owner’s Debt to total assets ratio measure of a ability to carry long term – firm’s debt, calculated by dividing total liabilities by total assets.
Accounts receivable turnover ratio – measure of time a company takes to turn its accounts receivable into cash, calculated by dividing sales by the average value of accounts receivable for a period Debt ratios – ratios that measure a firm’s reliance on debt financing of its operations (sometimes called leverage ratios) Debt to equity ratio – measure of the extent to which a business is financed by debt as opposed to invested capital, calculated by dividing the company’s total liabilities by owner’s equity Debt to total assets ratio – measure of a firm’s ability to carry long term debt, calculated by dividing total liabilities by total assets.