Operational performance ratios measure how different aspects of a company's finances are performing. The fixed-asset turnover ratio, operating cycle ratio and revenue per employee ratio each provide a ...

A company's operating cycle, or cash conversion cycle, shows the length of time it takes a company to buy inventory, convert it into sales and collect the "accounts receivable" revenue from the sales.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

For 25 years or longer, operating ratio (the ratio of operating expenses to operating revenue) has been a common measure of profitability and efficiency in the truckload transportation industry.