Ratio Analysis

Ratios used in financial analysis compare companies to or within an industry. We have listed groups of commonly used ratios with links to examples, explanations, and formulas. Continue reading

Break-Even Analysis and the Break-Even Point

When considering the production or sale of a new product or service, businesses often will use break-even analysis and the break-even point to see whether its financially feasible. See how it works in this free tutorial. Continue reading

Total Asset Turnover Ratio

The total assets turnover ratio measures the use of all assets in terms of sales, by comparing sales with net total assets. This interactive tutorial walks you through the calculations as well as where on the financial statements to find the numbers. Continue reading

Inventory Turnover Ratio

The inventory turnover ratio compares sales to inventories, reflecting a company’s ability to convert inventory into cash. This interactive tutorial walks you through the calculations, and shows you where to find the numbers of your financial statements. Continue reading

Fixed Assets Turnover Ratio

The fixed assets turnover ratio measures how fixed assets are used to generate sales, by comparing sales to net fixed assets. This interactive tutorial walks you through the calculations as well as where to find the numbers on your financial statements. Continue reading

Income Statement, Single Step

Learn about the structure and contents of a single-step income statement by examining one for the fictitious company Bogus Manufacturing, Inc. Continue reading

Income Statement, Multi-Step

Learn about the structure and contents of a multi-step income statement by examining one for the fictitious company Bogus Manufacturing, Inc. Continue reading