Productivity & Efficiency Ratios AKA Asset Turnover Ratios Flashcards
How do you calculate asset turnover ratio?
Total Revenues / Total Assets
How do you calculate inventory turnover?
Cost of Goods Sold / Inventory
How do you calculate Days’ inventory?
365 / Inventory Turnover
How do you calculate days Sales Outstanding?
365 / Accounts Receivable Turnover
How do you calculate Fixed Asset Ratio?
Net Sales Revenue / Average Net Fixed Assets
How do you calculate accounts receivables turnover ratio?
Sales / Accounts Receivable
How do you calculate Accounts Payable Turnover?
COGS / Accounts Payable
How do you calculate Days Payable Outstanding? (DPO)
365/ Accounts Payable Turnover
How do you calculate the Operating Cycle?
Days Sales Outstanding + Days Sales Inventory
How do you calculate the Cash Cycle?
Operating Cycle - Days Payable Outstanding
