Efficiency Ratio Calculations Flashcards
What are efficiency ratios?
To measure how well a company is utilizing its assets
and resources
To measure how well a company is utilizing its assets
and resources
What are efficiency ratios?
Examples of efficiency ratios?
Accounts Receivable Turnover Ratio Accounts Receivable Days Asset Turnover Ratio Inventory Turnover Ratio Inventory Turnover Days
Accounts Receivable Turnover Ratio Accounts Receivable Days Asset Turnover Ratio Inventory Turnover Ratio Inventory Turnover Days
Examples of efficiency ratios?
Accounts Receivable Turnover Ratio?
Net credit sales / Average accounts receivable
Net credit sales / Average accounts receivable
Accounts Receivable Turnover Ratio?
Accounts Receivable Days?
Number of days in a period / Accounts receivable turnover ratio
Number of days in a period / Accounts receivable turnover ratio
Accounts Receivable Days?
Asset Turnover Ratio?
Net sales / Average total assets
Net sales / Average total assets
Asset Turnover Ratio?
Inventory Turnover Ratio?
COGS / Average inventory
COGS / Average inventory
Inventory Turnover Ratio?
Inventory Turnover Days?
Number of days in period / Inventory turnover ratio
Number of days in period / Inventory turnover ratio
Inventory Turnover Days?
