Asset Management Ratio

Question 1

Inventory turnover

Answer 1

Cost of goods sold / Average Inventory = times
AVERAGE INVENTORY = (Beg Inventory + End Inventory) / 2

Question 2

Days Sales Outstanding Ratio

Answer 2

Receivables / Daily Sales = days
-Daily Sales = Annual Sales / 360 days

Question 3

Fixed Asset Turnover Ratio

Answer 3

Sales / Net fixed assets or Long-Term Tangible Asset or PPE = times
or
Sales / Average Net fixed assets or Average Long-Term Tangible Asset or Average PPE

Question 4

Total Assets Turnover Ratio

Answer 4

Sales / Total Assets = times
or
Sales / Average Total Assets
-Average Total Assets = (Beg. Total Assets + End. Total Assets) / 2