stock turnover ratio= cost of goods sold divided by stock or you can say it like... net sales / average inventory
Cost of goods sold/Average Stock * 100
Debtor turn over ratio = Total sales / debtors By using this formula debtor turnover ratio can be found.
Total asset turnover ratio = total sales / total assets
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.
An unusually high Inventory Turnover Ratio compared to Industry could mean a Business is losing sales because of inadequate stock on hand.
Stock holding ratio is the same as inventory turnover ratio. To find this ratio one must find the cost of goods sold to a business and its average inventory over a certain time period.
Stock turnover period = Closing stock x 365 / cost of sales
Cost of goods sold/Average Stock * 100
Debtor turn over ratio = Total sales / debtors By using this formula debtor turnover ratio can be found.
Total asset turnover ratio = total sales / total assets
the formula of calculating account receivable turnover = Net Sales/ average gross receivable
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.
An unusually high Inventory Turnover Ratio compared to Industry could mean a Business is losing sales because of inadequate stock on hand.
turnover ratio +
To calculate the turnover for the month, first determine the average stock for the month by adding the beginning of month (BOM) stock and end of month (EOM) stock, then dividing by 2: (250,000 + 275,000) / 2 = 262,500. Next, turnover is calculated by dividing sales by the average stock: 200,000 / 262,500 = 0.7619. Therefore, the turnover for the month is approximately 0.76.
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.
Stock+debtors-creditors/sale