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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 does higher Sales Turnover indicates?
its means company have good financial position and having the goodwill
How do you calculate optimum level of current assets?
It depends on many factors. The demand for the product. when the demand for the product is established. then you make projections for sales. The Return on investment should be high. its a results of net profit/(current assets + fixed assets). The ROI will be high when the denominator is low. So when you keep current asset level low at the year end. the ROI will be high. You can keep the current assets level low only when your cash conversion cycle(CCC) is shorter. you can have shorter CCC. only when the Inventory turnover, and Recievables turnover are high and payables turn over is low (or) Inventory turnover, and Recievables turnover are low and payables turn over is high (if you have good credit terms with suppliers). Over the years it was a bone of contention for many finance manager on how to manage an optimum level.still a lot of work is going on to find out the optimum levels for current assets.
What is the Receivables Turnover Ratio?
The Receivables turnover ratio is used to measure the number of times on an average; the receivables are collected during a particular timeframe. A good receivables turnover ratio implies that the company is able to efficiently collect its receivables.Formula:RTR = Net Credit Sales / Average Net Receivables
What is Receivables Turnover Ratio?
The Receivables turnover ratio is used to measure the number of times on an average; the receivables are collected during a particular timeframe. A good receivables turnover ratio implies that the company is able to efficiently collect its receivables.Formula:RTR = Net Credit Sales / Average Net Receivables
What is sales turnover from annual turnover?
Sales turnover is purely the revenue from selling a good or service. It excludes things like return on investment, interest earned and asset appreciation which are also included in the annual turnover.
What is a good inventory turnover?
Good inventory turnover will depend on the industry. For instance, home sales is much slower than groceries and personal goods.
How did the east india company come into power?
east India company had come into exitance by increasing tax,selling machine made good with rates,increasing general price levels,economic exploitation.EAST INDIA COMPANY captured power in 1757but established in1857 revolt.
Is it good if a company's annual sales go up while the gross profit margin goes down and the net profit figures go down also what does this mean for the company?
If company sales are increasing but gross profit as well as net profit is declining, it means that sales are not increasing as rapidly as company costs and expenses are increasing. A thorough review should be conducted to analysis the situation and selling price should be adjusted according to increase in cost prices.
Which inventory turnover rates is an indication of good inventory management?
Higher Rates
Can high morale have a downside?
For the most part, high morale is positive for business. One downside which high morale can have is a low turnover rate. In theory this is good, however if a company needs to lay off due to financial reasons it is often the younger employees which get laid off first. This can be detrimental to the long term good of the company.
Turnover of Mercedes-Benz?
very good. ive got an S550 4matic and its explosive
