营运能力比率分析外文中英文翻译.doc

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 default?customers not paying when promised. The benefit obtained from extending credit is referred to as net credit sales?sales on credit less returns and refunds. Accounts receivable turnoverNet credit sales/Accounts receivable Overall asset management The inventory and accounts receivable turnover ratios reflect the benefits obtained from the use of specific assets inventory and accounts receivable.For a more general picture of the productivity of the firm, we can compare the sales during a period with the total assets that generated these sales. One way is with the total asset turn