Activity ratios Flashcards
1
Q
Days inventory outstanding (DIO)
A
(inventory/COGS)*365
2
Q
Inventory turnover
A
COGS/inventory
3
Q
Days sales outstanding (DSO)
A
(Accounts receivable/sales)*365
4
Q
Accounts receivable turnover
A
Sales/Accounts receivable
5
Q
Days payable outstanding (DPO)
A
(Accounts payables/Purchases)*365
6
Q
Account payable turnover
A
Purchases/Account payable
7
Q
Asset turnover ratio
A
Sales/Total Assets
8
Q
Cash conversion cycle
A
Days inventory outstanding + days sales outstanding- days payable outstanding
9
Q
Puchases
A
COGS + change in inventory
