Ratios used to Evaluate Asset Liquidity & Management Efficiency Flashcards
Trade Receivable Turnover
Net Credit Sales or Net Sales / Average Trade Receivable (net)
Average Collection Period or # of Days Sales Uncollected
360 Days / Receivable Turnover or Accounts Receivable ------------------------------- Net Sales / 360 Days
Inventory Turnover
Average Merchandise Inventory
Finished Goods Inventory
Average Finished Goods Inventory
Goods in Process Turnover
Average Goods in Process Inventory
Raw Materials Turnover
Average Raw Materials Inventory
Daily Supply in Inventory
360 Days / Inventory Turnover
Working Capital Turnover
Net Sales / Average Working Capital
Payable Turnover
Net Purchases / Average Accounts Payable
Operating Cycle
Average Conversion Period of Inventories + Average Collection Period of Receivable + Days Cash
Days Cash
Cash Operating Cost / 360 Days
Free Cash Flow
Net Cash from Operating Activities
Less: Cash used for Investing Activities and Dividends
Asset Turnover
Net Sales / Total Assets
Capital Intensity Ratio
Total Assets / Net Sales
