C Formulas Flashcards
(15 cards)
Current ratio?
Current assets / Current liabilities
Quick ratio?
(Current assets - Inventory) / Current liabilities
Inventory turnover?
Cost of sales / Average inventory
Inventory holding period?
(Average inventory / Cost of sales) * 365
Receivables collection period?
(Average accounts receivable / Annual credit sales) * 365
Payables payment period?
(Average accounts payables / Annual credit purchases) * 365
Sales/working capital?
Annual sales / Average working capital
Finished goods holding period
(Finished goods inventory / Annual COGS) * 265
WIP production period
(Work in progress / Annual COGS) * 365
Raw materials holding period
(Raw materials inventory / Annual raw materials purchases) * 365
Total annual cost?
Annual holding cost + Annual order cost + Annual purchase cost
Re-order level when demand is known and constant?
LReturn point Miller-Orr?ead time (days) × demand per day
Return point Miller Orr model?
Lower limit + (⅓ × spread)
Operating cycle?
inventory + Receivables - Payables
Asset turnover?
Sales / Capital Employed
