Saturday, November 26, 2011

Turnover ratio

Turnover ratio:

• Cash to sales = Cash/sales
• Accounts receivable to sales = Accounts receivable/sales
• Inventory to sales = Inventory/sales
• Quick assets to sales = Quick assets/sales
• Current assets to sales = Current assets/sales
• Working capital to sales =Working capital/sales
• Net worth to sales = Net worth/sales
• Total assets to sales = Total assets/sales

Turnover measure or asset management is known as assets utilization ratio. it described how efficiently or intensively a firm use its assets to generates sales.

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