Definition Net present value (NPV) is the capital budgeting formula which is used to measure the difference between the present value of cash inflows and outflows of potential investment or project. In other words, the net present value is the amount of money which an investment generated by comparing with cost adjusted for the time value […]

### Tag: Financial ratio

## Net Fixed Assets Formula | Example | Calculation | Analysis

Net fixed assets use to measure the net book value of all fixed asset on the which is calculated by subtracting the accumulated depreciation from the historical cost of the total assets. You can consider the purchasing price of all the fixed assets such as Vehicles, buildings, furniture, machinery, less the accumulated depreciation. What is […]

## Average Payment Period | formula | Example | Analysis

Average Payment Period The average payment period is the solvency ratio which is the average time that takes the company to pay off credit account payable. Sometimes when firm making the purchase for wholesale or the basic material than for payment credit management requires. This the simple arrangement for the payment through which some days give to […]

## Cash Ratio | Formula | Analysis | Example | Calculation

Cash Ratio Cash ratio or cash coverage ratio is the liquidity ratio which use to measure the ability of the company to pay off its current liabilities with cash or cash equivalent. As compare to the current ratio or quick ratio, cash ratio is more restricted because instead of assets only cash require to pay off […]

## Debt to Asset Ratio | Formula | Example | Analysis | Calculation

Debt to Asset Ratio Debt to asset ratio is the leverage ratio which is used to measure the total amount of assets which are financed by the creditors. In simple words It borrowing funds assets with the investors’ funds assets. This ratio shows how the company acquired its assets over time. To getting capital company […]