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

ACCOUTING, Ask questio. You have been appointed the accountant of a new org...

Ask questio. You have been appointed the accountant of a new organisation that is preparing its first set of financial statements. In determining the depreciation for the first yea

Accounting for PPE, Acquisition of Assets: The cost method of accounting is...

Acquisition of Assets: The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the authority. Cost is determined as the fair val

Vital essential and desirable analysis, VED Analysis: VED i.e. Vital, E...

VED Analysis: VED i.e. Vital, Essential and Desirable analysis is a technique employed for spare part inventory analysis and is broadly used in the automobile industry particul

Journal entries to record transactions in the general fund, A village orde...

A village ordered supplies for its Fire Department at an estimated cost of $16,700. The supplies were received with an invoice for $16,800. The village accepted the shipment and th

Prepare a lease amortization schedule, LessorMfg Corp. is a manufacturer of...

LessorMfg Corp. is a manufacturer of heavy equipment. On January 1, 2013, LessorMfg Corp. leases equipment to Small Company under a six-year noncancelable lease agreement. The foll

Depreciation, what are methods of calculating depreciation?

what are methods of calculating depreciation?

What are the various strategies about bond, What are the various strategies...

What are the various strategies behind selected low (e.g., zero) or high coupon rates when issuing bonds?

#title.student., t account for equipment beg, bal 80,000 disposal 22...

t account for equipment beg, bal 80,000 disposal 22,000 acquisition-41,000 end bal. 99,600 acct. depreciation equip. disposa; 8,500 beg, bal 41,500

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

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