Home » Accounting Resources » Accounting Ratios » Asset / Inventory Management

Asset / Inventory Management

Accounts Payable (Creditors) Turnover Ratio

Accounts Payable Turnover Ratio = Credit Purchases / Average Accounts Payable

Where Average Accounts Payable = (Beginning Accounts Payable + Ending Accounts Payable) / 2

Accounts Receivable (Debtors) Turnover Ratio

Accounts Receivable Turnover Ratio = Credit Sales / Average Accounts Receivable

Where Average Accounts Receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) / 2

Asset Turnover Ratio

Asset Turnover Ratio = Sales / Average Total Assets

Where Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2

Inventory Turnover Ratio

Inventory Turnover Ratio = Cost of Goods Sold / Average Inventories

Where Average Inventories = (Beginning Inventories + Ending Inventories) / 2

Stay Updated with Accountancy

Get the latest accounting news and articles sent directly to your inbox

This information will never be shared with any third party.