Management Ratio Flashcards
1
Q
Day’s inventory outstanding
A
Inventory/ cost of sales * 365
2
Q
Inventory turnover
A
Cost of sales / inventory
3
Q
Days sales outstanding
A
Account receivable / sales * 365
4
Q
Account receivable turnover
A
Sales / account receivable
5
Q
Days payable outstanding
A
Accounts payables / purchases * 365
6
Q
Purshases
A
Cost of sales + closing inventory - beginning inventory
7
Q
Account payable turnover
A
Purchases / accounts payable
8
Q
Assets turnover ratio
A
Sales / total assets
9
Q
Cash conversion cycle
A
Days inventory + days receivables - days payable
