Efficiency ratios, Financial Accounting

Efficiency Ratios - These ratios include Receivables Turnover, Inventory Turnover, Asset Turnover and Net Working Capital Turnover ratios. Efficiency ratios demonstrate the utilization of Assets of the company so as to generate Revenue. i.e. the best utilization of assets to generate income is shown by efficiency ratios.

Ø  Receivables Turnover = Total Revenue / Net Receivables

Ø  Inventory Turnover =  Cost of Revenue / Inventory

Ø  Asset Turnover = Total Revenue / Total Assets

Ø  Net Working Capital Turnover = Total Revenue or Sales / Net Working Capital

Posted Date: 7/26/2012 5:51:05 AM | Location : United States







Related Discussions:- Efficiency ratios, Assignment Help, Ask Question on Efficiency ratios, Get Answer, Expert's Help, Efficiency ratios Discussions

Write discussion on Efficiency ratios
Your posts are moderated
Related Questions
Q. Written inquiries for financial information? Inquiry - A procedure which comprises seeking information both financial and non-financial, of knowledgeable persons throughout

Q. Estimate cost of equity using market values? The cost of equity as well as cost of debt should always be estimated using market values. If the approximate cash flows of a

Foreign Currency Translation - Restating foreign currency in equivalent dollars; unrealized losses or gains are postponed and carried in Stockholder's Equity until foreign operatio

Can you show me how to solve these problems? PLEASE!!! I can't figure out how to solve these. :-( 1.Briarcrest Condiments is a spice-making firm. Recently, it developed a new


Proposals A, B, C, D, E, and F are being considered with money flows over 10 years. Proposal (A and D) are mutually exclusive, (C and F) are also mutually exclusive, and pr

Options with discontinuous payoffs are called Binary options. An example is the cash-or-nothing callwhich pays nothing if the stock price at the maturity of the option is below the

an asset has a useful life of 4 years.If it is depriciated by diminishing balance method.Its book value at the end of 4 years is 24% of its original cost.Hence the rate of depricia

A stock is about to pay a dividend of $2.00. The dividend is expected to grow at 15% for the next 7 years, 10% for the following 3 years, 8% for the next 2 years and then return to

sale of 430 to ramdas were credited in his account 340