Net Sales / Average Accounts Receivable = Account Receivable Turnover
The equation for AR Turnover is: AR Turnover = Net Credit Sales / Average AR (/=divided by) Some companies' will report only sales, however this can affect the ratio depending on the amount of cash sales.
Merchandise turnover ratio = 360 / 40 = 9 times
stock turnover ratio= cost of goods sold divided by stock or you can say it like... net sales / average inventory
The Receivables turnover ratio is used to measure the number of times on an average; the receivables are collected during a particular timeframe. A good receivables turnover ratio implies that the company is able to efficiently collect its receivables.Formula:RTR = Net Credit Sales / Average Net Receivables
Net Sales / Average Accounts Receivable = Account Receivable Turnover
the formula of calculating account receivable turnover = Net Sales/ average gross receivable
The equation for AR Turnover is: AR Turnover = Net Credit Sales / Average AR (/=divided by) Some companies' will report only sales, however this can affect the ratio depending on the amount of cash sales.
Asset Turnover = Net Sales/Average Total Assets Asset Turnover = 51195/134128 Asset Turnover = 0.38169 It depends on the industry, but generally a number this low indicates that the company has too much money tied up in assets that are not contributing to sales. It's a ratio of sales/total assets (or total average assents). Profit margins are an important consideration when analysing this number.
Generally inventory turnover period is calculated as: Sales/Inventory Also by, Cost of Goods Sold/ Average Inventory
Merchandise turnover ratio = 360 / 40 = 9 times
stock turnover ratio= cost of goods sold divided by stock or you can say it like... net sales / average inventory
Plant and equipment turnover ratio gives an indication of managment's ability to generate sales based upon investments in plants and equipment. Plant and Equipment Turnover = Sales / Average Total Plant and Equipment Inventories
Formula for asset turnover: Asset turnover = net sales / total assets Net sales = 32000 * 3.2 = 102400
The annual inventory turnover in the retail painting industry is obtained by dividing the Annual Cost of Sales by the Average Inventory Level. A low inventory turnover ratio is a signal of inefficiency.
The Receivables turnover ratio is used to measure the number of times on an average; the receivables are collected during a particular timeframe. A good receivables turnover ratio implies that the company is able to efficiently collect its receivables.Formula:RTR = Net Credit Sales / Average Net Receivables
The Receivables turnover ratio is used to measure the number of times on an average; the receivables are collected during a particular timeframe. A good receivables turnover ratio implies that the company is able to efficiently collect its receivables.Formula:RTR = Net Credit Sales / Average Net Receivables