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Net Sales / Average Accounts Receivable = Account Receivable Turnover
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.
Merchandise turnover ratio = 360 / 40 = 9 times
stock turnover ratio= cost of goods sold divided by stock or you can say it like... net sales / average inventory
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
Net Sales / Average Accounts Receivable = Account Receivable Turnover
the formula of calculating account receivable turnover = Net Sales/ average gross receivable
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.
Asset Turnover = Net Sales/Average Total Assets Asset Turnover = 51195/134128 Asset Turnover = 0.38169 It depends on the industry, but generally a number this low indicates that the company has too much money tied up in assets that are not contributing to sales. It's a ratio of sales/total assets (or total average assents). Profit margins are an important consideration when analysing this number.
Generally inventory turnover period is calculated as: Sales/Inventory Also by, Cost of Goods Sold/ Average Inventory
Merchandise turnover ratio = 360 / 40 = 9 times
stock turnover ratio= cost of goods sold divided by stock or you can say it like... net sales / average inventory
Plant and equipment turnover ratio gives an indication of managment's ability to generate sales based upon investments in plants and equipment. Plant and Equipment Turnover = Sales / Average Total Plant and Equipment Inventories
Formula for asset turnover: Asset turnover = net sales / total assets Net sales = 32000 * 3.2 = 102400
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.
The annual inventory turnover in the retail painting industry is obtained by dividing the Annual Cost of Sales by the Average Inventory Level. A low inventory turnover ratio is a signal of inefficiency.
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