CH 5 Assets Ratio
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Net Credit Sales / Average Accounts Receivable
- This ratio reflects the number of times the trade receivables were recorded, collected, and recorded again during the
Cost of Goods Sold / Average Inventory
To measure the rate at which inventory moves through operations.
Fixed Assets Turnover
Sales / Average Fixed Assets
Measure is use to determine the speed at which fixed assets are used up
Total Assets Turnover
Sales / Average total Assets
Measures the rate at which assets are used up in operations
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