You divide gross annual sales by A/R. The result shows how often per year your A/R turn. For example, if you have sales of $1000 and A/R of $100, the answer suggests that your A/R turn 10x.
The equation for AR Turnover is: AR Turnover = Net Credit Sales / Average AR (/=divided by) Some companies' will report only sales, however this can affect the ratio depending on the amount of cash sales.
Here is a link to Annual Employee Turnover Calculator http://www.assessmentcompany.com/resources/costperhire.html
Total asset turnover ratio = total sales / total assets
Net Sales / Average Accounts Receivable = Account Receivable Turnover
shareholder equity / total assets
The equation for AR Turnover is: AR Turnover = Net Credit Sales / Average AR (/=divided by) Some companies' will report only sales, however this can affect the ratio depending on the amount of cash sales.
Here is a link to Annual Employee Turnover Calculator http://www.assessmentcompany.com/resources/costperhire.html
There are two ways to calculate Creditors Turnover. First is using the COGS (Cost of Goods Sold) as the basis. Creditors Turnover = COGS / Creditors (A/c Payables) . Second is the more common method which uses Sales as the basis. Creditors Turnover = Net Sales / Creditors (A/c Payables).
Total asset turnover ratio = total sales / total assets
Stock turnover period = Closing stock x 365 / cost of sales
Net Sales / Average Accounts Receivable = Account Receivable Turnover
shareholder equity / total assets
First calculate A/R turnover: A/R Turnover = Sales/ Average A/R A/R days outstanding = Amt. of days in a year (could be 360 or 365 depending on problem) divided by A/R turnover In short, A/R outstanding = 365/accounts receivable turnover.
the formula of calculating account receivable turnover = Net Sales/ average gross receivable
Generally inventory turnover period is calculated as: Sales/Inventory Also by, Cost of Goods Sold/ Average Inventory
Debtor turn over ratio = Total sales / debtors By using this formula debtor turnover ratio can be found.
stock turnover ratio= cost of goods sold divided by stock or you can say it like... net sales / average inventory