A company's ability to collect its accounts receivable.
Accounts receivable turnover- relationship between sales and accounts receivable. Number of days' sales receivables (multiply by 365) the bigger the number the worse!
A financial statement in which all items are expressed only in relative terms.
Base everything off of sales or total assets. Percentage instead of dollar value
Take out the amounts from the vertical analysis and leave the percentages
= Current Assets/Current Liabilities
Current Liabilities= Accounts payable
(Net income - Preferred Stock Dividends) / Average Shares of common stock outstanding
Financial analysis that compares an item in a current statement with the same item in prior statements.
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