文档介绍：外文翻译
原文
Operating Capacity Ratio Analysis
Material Source:《Financial Management and Analysis》
Author: Frank J. Fabozzi .Pamela P. Peterson
Using financial ratio analysis
Financial analysis provides information concerning a firm’s operating performance and financial condition. This information is useful to analysis in evaluating a firm’s operation and to an investor in evaluating the risk and potential returns to investing in a firm’s securities.
Activity ratios
Activity ratios?for the most part, turnover ratios?can be used to evaluate the benefits produced by specific assets, such as inventory or accounts receivable or to evaluate the benefits produced by the totality of the firm’s assets.
Inventory management
The inventory turnover ratio indicates how quickly a firm has used inventory to generate the goods and services that are sold. The inventory turnover is the ratio of the cost of goods sold to inventory:
Inventory turnover ratioCost of goods sold/Inventory
Accounts receivable management
In much the same way we evaluated inventory turnover, we can evaluate a firm’s management of its accounts receivable and its credit policy. The accounts receivable turnover ratio is a measure of how effectively a firm is using credit extended to customers. The reason for extending credit is to increase sales. The downside to extending credit is the possibility of defaul