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
how to solve the question income statements

Q. Example of Dividend valuation model? Dividend valuation model D 1 /P +g= 24(1.06)/ 428+ 0·06 = 0·119 or 11·9% An incorrect formula for the dividend evaluation model was u

Red Lake Mines, Inc. is considering adoption of a new project requiring a net investment of $10 million. The project is expected to generate 5 years of net cash inflows of $5 milli


Q. Define Return on capital employed? Return on capital employed (ROCE) is as well called accounting rate of return. Distinctly IRR ROCE uses average annual accounting profit b

Asset Acquisition An alternate way of conducting a buyout by purchasing few assets an industry may have inspite of purchasing that organizations stock.

As of January 1, 2011, the partnership of Canton, Yulls, and Garr had the following account balances and percentages for the sharing of profits and losses: Cash 80,000 non cash

d. Prepare the summary journal entry required to transfer finished component kits from the Cutting Department to the Finishing Department in January. e. Compute the total cost assi

Richard Company had 102,000 shares of $5 par value common stock issued and outstanding before repurchasing 10,200 shares for $76,500. Richard had received $2,040,000 cash from shar

What are some examples of adjusting entries that are made at the end of the accounting period to bring general lever accounts balance in accordance with GAAP.