Measuring Corporate Performance
3 important questions on Measuring Corporate Performance
What does EVA, ROC, ROA and ROE tell you?
How profitable the company is
What does the recievables turnover say?
It measures the firm's sales as multiple of its receivables. If customers are quick to pay, unpaid bills will be relatively small proportion of sales and the receivables turnover will be high.
What does the inventory turnover say?
Efficient firms don't tie up more capital than they need in raw materials and finsihed goods. They hold only a relatively small level of inventories of raw materials and finished goods, and they turn over those inventories rapidly.
Try our study magic for free
a PDF, study it super fast
- No sign up, email or credit card needed!
- AI makes unlimited flashcards
- Get unlimited quizzes and tests
- Ask AI anything
Create a notebook
- No sign up, email or credit card needed!
- Have and keep perfect overview
- Make flashcards, notes and mind maps
- Review, test and score!
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
