ACTIVITY RATIO Definition

Bookmark and Share

ACTIVITY RATIO is any accounting ratio that measures a firms ability to convert different accounts within their balance sheets into cash or sales.

Learn new Accounting Terms

SUBSCRIBER, in securities, is an entity that contributes (or promises to contribute) a sum of money to purchase securities. The term Subscriber encompasses all Non-Professional and Professional Subscribers. See NON-PROFESSIONAL SUBSCRIBER and PROFESSIONAL SUBSCRIBER.

SALES MULTIPLE is the most widely used valuation benchmark used in the valuation of a business. The information needed are annual sales and an industry multiplier, which is usually a range of .25 to 1 or higher. The industry multiplier can be found in various financial publications, as well as analyzing sales of comparable businesses. This method is easy to understand and use. The sales multiple is often used as the valuation benchmark.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.