Debtor’s Velocity = (Receivable bills + Debtors/Credit sales) x No of working days
Stock Turnover Ratio = Cost of goods sold/Average Stock
Creditor’s Turnover Ratio = (Bills payable + Creditors/Net credit purchase) x 365
Working capital Turnover Ratio = Cost of sales/Net working capital
Total Capital Turnover Ratio = Cost of sales/ Total capital employed
Average Payment Period = (Account payable/Net credit purchase) x 365
Fixed Assets Turnover Ratio = Cost of sales/Net capital employed
Current Assets Turnover Ratio = Current Assets/Cost of Sales
Capital Turnover Ratio = Net Working Capital/Cost of Sales
Expenses Ratio = Sales/Individual Expenses
Sales to Net worth Ratio =Net Worth /Cost of Sales
Links of Previous Main Topic:-
- Introduction to accounting and branches of accounting
- Preparation of final accounts
- Introduction of fund flow statement
- Introduction cash flow statement
- Ratio analysis significance of ratio analysis
- Advantages of ratio analysis
- Limitation of ratio analysis
- Classification of ratios
Links of Next Finance Topics:-