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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

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