Activity Ratios

Question 1

Inventory Turnover

Answer 1

Inventory Turnover = Cost of Goods Sold (COGS) / Inventory

Question 2

Average Collection Period

Answer 2

Receivables / (Revenue / 365 Days)

Question 3

Receivable Turnover

Answer 3

Annual Credit Sales (Revenue) / Receivables

Question 4

Asset Turnover

Answer 4

Asset Turnover = Sales / Total Assets