when you go to a bank or somewhere you want to trade money in for the other countrys money, they look at what 1 U.S dollar is worth in where ever you are going lets say you are going to Europe and...
This ratio looks at how long it takes for the business to get back the money it is owned. Average collection period for accounts receivable reveals the average number of days it takes for a company...
The limitations for the profit margin ratio is in comparing different industries. Profit margins between say a supermarket and an aircraft manufacturer would vary considerably.