• Working Capital Managemnt
    ways they are DTR and Average Collection Period. It indicates the number time debtors turned over each year. Generally the higher value of debtor’s turnover shows high efficiency to manage the credit management. Total sales Debtors turnover ratio...
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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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  • impact of recevable management
    ) between sales and collection thereof. MathurS B (2002) suggested that these ratios could be calculated by the following formulae. Receivable Turnover Ratio: Average Collection Period= (Source Wikipedia, the free encyclopedia/Weygandt, J. J., Kieso, D. E., & Kell, W. G. (1996...
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  • Nestle
    TURNOVER, AVERAGE COLLECTION PERIOD, AVERAGE PAYMENT PERIOD and TOTAL ASSET TURNOVER. 3. DEBT RATIO A ratio that indicates what proportion of debt a company has relative to its assets. The measure gives an idea to the leverage of the company along with the potential risks the...
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  • Accounting
    3. Inventory turnover (times) = cost of goods sold / inventory = $3,704,000 / $700,625 = 5.29 times 4. Average collection period = accounts receivable / average sales per day...
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  • Dell vs. Hp Performance & Finanical Analysis
    liabilities. FINANCIAL ANALYSIS OF DELL AND HP 9 Dell’s accounts receivable rate of growth was 11.90% on average, growing faster than the company’s average sales rate, 1.86%. This relates to the increase in the collection period in days also increasing over this five year span. The category of property...
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  • A Study on Financial Performance Using Ratio Analysis at Emami Ltd
    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 buyers...
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  • Financial Ratios
    current ratio at the balance sheet data than the average or normal current ratio during the rest of the year. For Example: near the end of an accounting period a firm might delay normal purchases on an account or might collect receivables for loans to officers, classified as non current...
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  • Working Capital Management
    Turnover Ratio Current Ratio Quick Ratio Cash and Bank to Current Liabilities Receivable Index Average Collection Period Inventories Index Components of Inventories Chart No 3-1 3-2 3-3 3-4 3-5 3-6 3-7 4-1 4-2 6-1 6-2 6-3 6-4 6-5 6-6 6-7 7-1 7-2 7-3 7-4 7-5 7-6 7-7 8-1 8-2 8-3 8-4 Page No. 36...
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  • Analysis
    future financing needs easily. 12 6.16 (a) and (b) Short-term liquidity Current ratio Quick ratio Cash flow liquidity ratio* Average collection period Days inventory held Days payable outstanding Cash conversion cycle Operating efficiency Accounts receivable turnover Inventory turnover...
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  • ratio analysis of husain mills and allahwasya textile mills
    this ratio is low, it means that the liquidity of the receivables of the company is low. On the other hand, a high value indicates that the company has high liquidity of its receivables. - Hussain Mills Limited: Accounts Receivable Turnover of Hussain Mills Limited has shown a decreasing trend...
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  • Almarai
    average collection period indicates an aggressive collection of accounts receivable which reflects good collection policies. 3. The ratio measuring turnover of fixed assets indicates how rapidly sales revenues are being generated as a result of using up the firm’s plant and equipment ( net fixed...
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  • Working Capital
    amount to blocking of the Firms funds thus time interval between the date of sales and the date of payment has to be financed out of working capital. A Firms investment in account receivable depends on 1. The volume of credit sales 2.Collection period Therefore average investment...
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  • Ratio analysis and their significance
    Fund Ratio c. Proprietary Ratio Prepared by Fred M’mbololo 3 d. Fixed Assets to Proprietor’s Fund Ratio e. Capital Gearing Ratio f. Interest Coverage Ratio C. Activity Ratio or Turnover Ratio a. Stock Turnover Ratio b. Debtors or Receivables Turnover Ratio c. Average Collection Period...
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  • Financial
    365 / 63.96 = 6 days Receivables Ratio Receivables Turnover = Sales / Account Receivable 4814475 / 420807 = 11.44 Times Days’ Sales In Receivables = 365 / Receivables Turnover 365 / 11.44 = 32 days Total Asset Turnover Total Asset Turnover = Sales / Total Asset 4814475...
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  • Working Capital
    iii) Average Collection period Ratio iv) Creditors Turnover Ratio v) Average Payment period Ratio vi) Working capital Turnover Ratio vii) Current Assets Turnover Ratio viii) Net Assets Turnover Ratio i) Inventory Turnover Ratio: The inventory turnover ratio...
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  • Financail Statement Analysis
    measures what happened during a period whereas the balance sheet shows the condition only at the end of the period, average balance sheet data are normally used for consistency. ------------------------------------------------- ------------------------------------------------- Activity Ratios...
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  • Krispy Kreme
    = flow/ receivables = snapshot – can be problematic o Receivables turnover – stable o Inventory turnover – stable¨ o Asset turnover – very important ratio – is decreasing, consistently over the period => can be due to lower sales or higher assets  New investments generate lower and lower sales...
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  • Working Capital Concept
    receivables. The turnover of receivables indicates the rate at which sales are converted into cash and the average conversion period shows the number of days of sales that are represented by the account receivables. A declining turnover of account receivables indicates an over investment of funds in...
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  • Engro Foods Strategic Management
    . Activity Ratios ACTIVITY RATIOS Inventory Turnover Fixed Asset Turnover Total Asset Turnover Account Receivables Turnover Average collection Period Sales Inventory of finished goods Sales Fixed Assets Sales Total Assets Annual credit Sales Accounts Receivables Account Receivable Total credit...
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