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If a company has an inventory turnover rate of 7 and an AR turnover rate of 5 and assuming there is 365 days in a year what is the period of time required to convert its inventory into cash?
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What is stock turnover ratio?
Also called the Inventory Turnover Ratio, this is a measure of the number of times inventory is sold or used in a time period corresponding to the average inventory held by the company. This ratio can help us determine how efficiently the company is using its inventory (raw materials) to generate revenue and income. i.e., how quickly is the company able to transform the inventory into finished goods that can be sold and generate an income.A high turnover rate means that the company is utilizing its available inventory effectively but a very high value may cause risks of inadequate inventory levels. Whereas, a low turnover rate means that the company is overstocking or there are deficiencies in the production strategies.Formula:STR or ITR = Total cost of goods sold / Average Inventory
How do you get your company started in inventory management?
You can start your company in inventory management by getting the required licenses and certificates, and then you need to advertise and find clientele that would like to use your company.
What is the meaning of turnover how you calculate the annual turnover of a company?
Here is a link to Annual Employee Turnover Calculator http://www.assessmentcompany.com/resources/costperhire.html
1 In comparing the accounts of a merchandising company with those of a service company what additional accounts would the merchandising company likely use assuming it employs a perpetual inventory?
Cost of goods sold and Gross profit
What is asset turnover?
Asset Turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating revenue or income for the company. A higher asset turnover ratio implies that the company is operating efficiently and is able to generate solid revenue income using the assets at their disposal.Formula:Asset Turnover = Sales / Average Total Assets
An aircraft company would have an low inventory turnover?
An aircraft company will incur low inventory turnover if the stock is purchased as bulk and demand is low, thus slow discharge of inventory.
What is finished goods inventory turnover ratio?
A finished goods inventory turnover ratio is the rate that the inventory is used over a period of time. This measurement shows a company how it is doing in general. If there is too much inventory, then a company isn't doing that well.
What is inventory turnover?
this is a ratio used to find out how many times inventory is sold out and replaced in a company's fiscal year.
Is Increasing in turnover is good or bad?
An increase in inventory turnover is good. This means that over a certain period of time, the amount of times the inventory of a company was sold and replaced has increased.
What is stock turnover ratio?
Also called the Inventory Turnover Ratio, this is a measure of the number of times inventory is sold or used in a time period corresponding to the average inventory held by the company. This ratio can help us determine how efficiently the company is using its inventory (raw materials) to generate revenue and income. i.e., how quickly is the company able to transform the inventory into finished goods that can be sold and generate an income.A high turnover rate means that the company is utilizing its available inventory effectively but a very high value may cause risks of inadequate inventory levels. Whereas, a low turnover rate means that the company is overstocking or there are deficiencies in the production strategies.Formula:STR or ITR = Total cost of goods sold / Average Inventory
What should be the ideal inventory turnover ratio for a manufacturing company?
25 times for manufacturing companies
What is company turnover?
company's turnover is '' total sale of the company for that year ''.
How do you get your company started in inventory management?
You can start your company in inventory management by getting the required licenses and certificates, and then you need to advertise and find clientele that would like to use your company.
asset efficiency analysis?
these ratios calculate the amount of revenue contributed by assets of a company. higher ratios imply higher revenue contributed and higher efficiency. some of the ratios calculated here are:a) Inventory turnoverInventory turnover = Cost of goods sold / Average inventoryAverage inventory = (Opening inventory + Closing inventory) / 2b) Receivables turnoverReceivables turnover = Revenue / Average receivablesAverage receivables = (Opening receivables + Closing receivables) / 2
Asset management ratios?
Asset management ratios are financial metrics used to evaluate a company's efficiency in managing its assets to generate revenue. Common ratios include asset turnover ratio, inventory turnover ratio, receivables turnover ratio, and the fixed asset turnover ratio. These ratios help investors and analysts assess a company's operational performance and effectiveness in utilizing its assets to generate profits.
What is the turnover of vivante pure foods ltd?
There turnover last year was 19 core but it was cooked up. Actually the company has just a turnover of meager 1 crore. The company is running in losses.
What company is facing problems with high turnover?
Sprint/Nextel is facing problems with high turnover
