FR - Efficiency Ratios

Question 1

Inventory turnover

Answer 1

Cost of goods sold / inventory

Question 2

Receviables turnover

Answer 2

Revenue / accounts receivable

Question 3

Asset turnover

Answer 3

Revenue / asset

Question 4

Payables turnover

Answer 4

Cost of goods sold / accounts payable

Question 5

Days sales of inventory

Answer 5

( Inventory / cost of goods sold ) x 365

Question 6

Days sales outstading

Answer 6

( Accounts receivable / revenue ) * 365

Question 7

Days payable outstanding

Answer 7

( accounts payable / cost of goods sold ) * 365