CH 5 Assets Ratio

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  1. Receivable Turnover
    Net Credit Sales / Average Accounts Receivable

    • This ratio reflects the number of times the trade receivables were recorded, collected, and recorded again during the
    • period.
  2. Inventory Turnover
    Cost of Goods Sold / Average Inventory

    To measure the rate at which inventory moves through operations.
  3. Fixed Assets Turnover
    Sales / Average Fixed Assets

    Measure is use to determine the speed at which fixed assets are used up
  4. Total Assets Turnover
    Sales / Average total Assets

    Measures the rate at which assets are used up in operations
Card Set
CH 5 Assets Ratio
Ratios used to determine the rate at which inventory is processed
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