ASSET UTILIZATION RATIOS Flashcards
1
Q
Receivable Turnover
A
Net Credit Sales
_____________
Average AR
2
Q
Receivables Collection Period RCP
A
Average AR
______________________
Average Credit Sales per day
(365 days)
3
Q
Inventory Turnover
A
COGS
________________
Average Inventory
4
Q
Inventory Conversion Period ICP
A
Average Inventory
__________________________
Average COGS per day
5
Q
Total Asset Turnover
A
Sales
__________________
Average Total Assets
6
Q
Fixed Asset Turnover
A
Sales
____________________
Average Net Fixed Assets (after depreciation)
7
Q
CCC Cash conversion cycle
A
ICP + RCP - PDP
