·
Accounts Receivable Turnover Ratio – Credit sales
divided by average accounts receivable.
·
Accounts Receivable Collection Period (Days Sales
Outstanding Ratio) – Number of days in the year divided by the
accounts receivable turnover ratio.
·
Inventory Turnover Ratio – Cost of goods sold divided
by average inventories.
·
Days Sales in Inventory Ratio – Number of days in the
year divided by the inventory turnover ratio.
·
Operating Cycle in Days – Accounts receivable
collection period (days sales outstanding ratio) plus days sales in
inventory ratio.
·
Accounts Payable Turnover Ratio – Cost of goods sold
divided by average accounts payable.
·
Accounts Payable Days Outstanding Ratio – Number of
days in the year divided by accounts payable turnover ratio.
·
Cash Conversion Cycle in Days – Days sales
outstanding, plus days sales in inventory, minus accounts payable days
outstanding.
