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According to the frequency theory
Receivable Turnover
A financial metric indicating how efficiently a company collects cash from credit sales by measuring the number of times average accounts receivable are collected over a period.
Inventory Turnover
A ratio showing how many times a company's inventory is sold and replaced over a period, indicating efficiency in managing stock.
Current Ratio
A liquidity ratio that measures a company's ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.
Acid-test Ratio
A financial metric that assesses a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.
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