Management accounting presented inunderstandablehumanaccessiblelanguage.

Management accounting presented inhumanaccessiblelanguage.

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Articles on management accounting and reporting

Inventory turnover (IT)

Inventory turnover (IT)

Defines how many times during the reporting period the inventory goods are transformed into the goods sold.

Net profit margin in sales volume

Net profit margin in sales volume

Shows the net profit margin (in percentage, %) in the sales volume of the enterprise.

Return on equity (ROE)

Return on equity (ROE)

Shows the profit of the enterprise (in percentage from owner’s equity, %) for the reporting period.

Receivables turnover ratio (RTR)

Receivables turnover ratio (RTR)

Defines how many times during the reporting period the receivables turned into the revenue in the current account. The higher the figure, the faster the receivables are turning into cash. The decline shows that the debtors began to pay worse.

Gross profit rate in sales volume

Gross profit rate in sales volume

Shows profit margin (in percentage, %) in the sales volume of the enterprise.

Financial performance

Financial performance

First of all you need to consider whether you need them or not. To make it cleat financial performance is a ratio of one line from Balance sheet to another one or to the line from Profit and loss account.

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