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Debtor turn over ratio = Total sales / debtors

By using this formula debtor turnover ratio can be found.

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Q: How do you calculate debtors turnover ratio?
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Related questions

How to calculate DP ratio?

Stock+debtors-creditors/sale


How do you calculate total asset turnover?

Total asset turnover ratio = total sales / total assets


How do you calculate stock turnover ratio?

stock turnover ratio= cost of goods sold divided by stock or you can say it like... net sales / average inventory


What is cash turnover ratio?

Cash turnover ratio describes that how many time cash cycle has repeated in any fiscal year that means how many time inventory is purchased and converted to finished goods and cash is received from debtors.


How calculate accounts receivable turnover ratio?

the formula of calculating account receivable turnover = Net Sales/ average gross receivable


What is the asset turnover ratio used for?

The asset turnover ratio is used to calculate how effectively a company is using it's assets to encourage production. If the asset turnover ratio is high, the assets are being used effectively. If the ratio is low, the assets could be used more productively to facilitate production.


Classification of Ratio Analysis?

1. Ratios for management a. Operating ratio b. Debtors turnover ration c. Stock turnover ratio d. Solvency ratio e. Return on capital 2. Ratios for creditors a. Current ratio b. Solvency ratio c. Fixed asset ratio d. Creditors turnover ratio 3. Ratios for share holders a. Yield ratio b. Proprietary ratio c. Dividend rate d. Capital gearing e. Return on capital fund.


What is finished goods turnover ratio?

turnover ratio +


How do you calculate creditor's turnover?

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).


Debtor collection period ratio?

Debt Collection Period ratio, is the year's sales which were outstanding at the balance sheet date, expresse in days. A rough measure of the days of credit that a firm's offers to its suppliers/clients. The formula is as follows: = (average debtors / turnover) * 365 Debt Collection Period ratio, is the year's sales which were outstanding at the balance sheet date, expresse in days. A rough measure of the days of credit that a firm's offers to its suppliers/clients. The formula is as follows: = (average debtors / turnover) * 365


How does one calculate the receivables turnover?

The Receivables Turnover Ratio is an accounting ratio that is calculated by dividing the net receivable sales by the average net receivables. There are several online calculators that can help one determine this ratio located at websites like Mini Web Tool, DanielSoper, and CCD Consultants.


What is the standard ratio for inventory turnover ratio?

five