• The Role of Financial Ratios
    by the average daily credit sales, calculated as follows: Average Collection Period |   =   | Accounts Receivable | | Annual Credit Sales / 365 | | The collection period also can be written as: Average Collection Period |   =   | 365 | | Receivables Turnover | | The total...
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  • Working Capital
    remain uncollected. (33) Receivable turnover Ratio = Debt collection period = 365 -----------------------------------Receivable turnover ratio Total Sales ----------------------Average Debtors Receivable Management in Company Year 2000-01 2001-02 2002-03 Sales 1042284 1247759 2214174 Avg...
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  • Finace Balance Sheets
    receivables collection period are growing. If you compare the average collection period to past years and it is increasing, that means your accounts receivables aren't as liquid or aren't being converted to cash as quickly. If the average collection period is decreasing, the opposite is true...
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  • Google Financial Analysis
    Efficiency Ratios 6 Analysis of Profitability Ratios 7 Analysis of Effectiveness/Market Performance Ratios 8 Summary 9 Current Ratio (2011) 9 Average Collection Period 9 Debt Ratio 9 Accounts Payable turnover 10 Gross Profit Margin 10 Return on Assets 10 Recommendations 11 Objective...
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  • Financial Ratios
    % Inventory Turnover Inventory Days 4x 91 days Accounts Receivable Turnover Collection Period 10.9x 365 Days Accounts Receivable Turnover 33 days zions business resource center 20 checklist This document has presented information on common size ratios for both the income...
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  • Analysis of Financial Statements 2
    assets figure are you depreciate your assets. Efficiency – Also called asset management ratios. Indicator of how efficiently the company manages the assets. Days in Receivables – This calculation shows the average number of days it takes to collect your accounts receivable (number of days of sales in...
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  • accounting and financial management
    assets = 11,600 + 600 + 500 + 5,000 = 17,700 Assets turnover ratio = 22,000 / 17,700 = 1.24 times Decreasing in the assets turnover ratio by 0.18 times. 5) Receivable Turnover Ratio = Revenue / trade receivables Year 2011: Revenue = £25,300 Trade receivables = £9,000 Receivables turnover ratio...
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  • Ration Analysis of Jamuna Oil Company
    Measurements Accounts Receivable Turnover Average Receivable Collection Period Days Delinquent Sales Outstanding Days Sales in Receivables Index Accounts Receivable Investment Ending Receivable Balance 31 32 35 35 37 38 39 40 41 42 43 45 46 49 49 51 52 53 55 56 57 58 59 61 62 63 64 66 67 69 69 71 72 73...
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  • Financial Statement
    . The formula is: Total Net Sales Average Accounts Receivable Accounts Receivable Collection Period - Reveals how many days it takes to collect all accounts receivable. As with accounts receivable turnover (above), fewer days means the company is collecting more quickly on its...
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  • Resourcebook
    turn over 10.9 times a year. Collection Period 365 Days Accounts Receivable Turnover 33 days On average, the accounts receivable turn over every 33 days. 20 z ions business resource center checklist This document has presented information on common size ratios for both the...
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  • Ratio Analysis
    generated by turnover of receivables, the debtors turnover ratio is supplemented by another ratio viz., average collection period. The average collection period states unambiguously the number of days’ average credit sales tied up in the amount owed by the buyers. The ratio indicates the extent to...
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  • Butler
    2.68x 2.61x 2.61x 46 days Good position helping cash flow Interest expense is increasing Table 7 Asset Utilization Ratio of Butler Lumber Company Asset Utilization Ratio Inventory Turnover Days Sales Inventory Receivables Turnover Days Sales in A/R Average Collection Period Total Asset Turnover...
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  • Company Study on Systems Engineering-Gdi
    a low accounts receivable turnover ratio and a higher than the standard average collection period. * Is - is not * Problem Statement: In the year 2009, GDI experienced a difficulty in collecting receivables which resulted to an accounts receivable turnover ratio of 6 and an average...
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  • A Case Study on Emaar
    credit sales/average net accounts receivable Year | Accounts Receivable turnover | 2008 | 3.56 | 2007 | 5.75 | 2006 | 5.30 | 2005 | 4.61 | 2004 | 3.74 | The above table indicates from the year 2004 the ratio was at 3.74 Which increased till the year 2007 at 5.75 , but in the year...
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  • Ration Analysis
    order t know the rate at which cash is generated by turnover of receivables, the debtors turnover ratio is supplemented by another ratio viz., average collection period. The average collection period states unambiguously the number of days’ average credit sales tied up in the amount owed by the...
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  • Performance Evaluation and Ratio Analysis of Pharmaceutical Company in Bangladesh
    ratio 4.1.1. Current ratio 4.1.2. Quick ratio or acid test 4.1.3. Cash Ratio 4.2. Asset management ratio 4.2. 1. Accounts receivable turnover 4.2.2. Average collection period 4.2.3. Inventory turnover ratio 4.2.4. Accounts Payable turnover 4.2.5. Accounts Payable turnover in days 4.2.6. Fixed asset...
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  • Project Report
    Average account receivables Receivable turnover ratio = Gross sales Average account receivables Particular | 2010-11 | 2009-10 | 2008-09 | 2007-08 | Gross Sales | 688623368 | 843295105 | 772355659 | 691409903 | Sundry...
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  • Project
    indicate inefficiency in collecting outstanding sales. Increase in accounts receivable turnover overtime generally indicates improvement in the process of cash collection on credit sales. Debtors Turnover Ratio = Net Credit Sales / Average Trade Debtors Debtors Collection Period The Debtors...
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  • Analyzing Your Financial Ratios
    monitoring this ratio on a monthly or quarterly basis can quickly underscore any change in collections. Average Collection Period   (Accounts + Notes Receivable) | = Average Collection Period | | | (Annual Net Credit Sales) / 365 | | The Average Collection Period (ACP) is another litmus...
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  • London Summerwear Ltd. (Lsw) – Case Study
    -Test (Quick) Ratio: 5 2. Leverage Ratio: 6 A) Debt-to-Equity Ratio: 6 B) Debt-to-Total Asset Ratio: 7 C) Total Capitalization Ratio: 7 3. Coverage Ratios: 8 A) Interest Coverage Ratio: 8 4. Activity Ratio: 9 A) Account Receivable Turnover Ratio: 9 B) Average...
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