Activity Ratios Flashcards
Financial Analysis Techniques 28. b Activity Ratios: Refers to 'asset utilization' or 'turnover' or 'operating efficiency' ratios . Often indicates how well a firm utilizes various assets (such as inventory, fixed)
1
Q
Receivables Turnover
A
annual sale/average recievables
2
Q
Days of Sales Outstanding (DSO)
A
365/receivables turnover
3
Q
Inventory Turnover
A
COGS/ Average Inventory
4
Q
Days of Inventory on Hand (DOH)
A
365/Inventory Turnover
5
Q
Payables Turnover
A
Purchases/Average Trade Payables
6
Q
Number of days of Payables
A
365/Payables Turnover Ratio
7
Q
Total Asset Turnover
A
Revenue/Average Total Assets
8
Q
Fixed Asset Turnover
A
Revenue/Average Net fixed Assets
9
Q
Working Capital Turnover
A
Revenue/Average Working Capital
