Efficiency ratios, Financial Accounting

Assignment Help:

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


Related Discussions:- Efficiency ratios

Company accounts, how do we calculate bonus issu4 and rights issue

how do we calculate bonus issu4 and rights issue

Journalize the transaction, received 16,000 contribution in exchange for co...

received 16,000 contribution in exchange for common stock

Personal financial specialist, Personal Financial Specialist (PFS) - CERTIF...

Personal Financial Specialist (PFS) - CERTIFIED PUBLIC ACCOUNTANT who specializes in PERSONAL FINANCIAL PLANNING and completes a series of requirements which compriseexperience, ed

Premium coupons , premium coupons that already have been expired should be ...

premium coupons that already have been expired should be or shouldn''t be estimated as liability?

Carriage inwards, difference between carriage inwards and carriage out ward...

difference between carriage inwards and carriage out wards

Example on investment appraisal method, Q. Example on investment appraisal ...

Q. Example on investment appraisal method ? Contribution per unit = 3·00 - 1·65 = $1·35 per unit Total annual contribution = 20000 × 1·35 = $27000 per year Annual cash fl

What are the potential benefits of implementing abc, Question 1: (a) De...

Question 1: (a) Define program evaluation. (b) Discuss the four types of program evaluation that are usually carried in the Public Sector. Question 2 (a) You have

Maturity risk premiums , Suppose that the real risk-free rate, r*, is 4% an...

Suppose that the real risk-free rate, r*, is 4% and that inflation is usual to be 8% in Year 1, 5% in Year 2, and 4% thereafter. Suppose also that all Treasury securities are highl

Ed Mettway, Should Touring Enterprises consider liabilities as a part of it...

Should Touring Enterprises consider liabilities as a part of its permanent financing? Why or why not?n #Minimum 100 words accepted#

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd