What Is 4.5 Turnover Ratio
4.5 TURNOVER RATIO
Turnover ratio help in knowing how well the company manages it resources. If the company manages its resources well, the larger will be its sales and thus helps in making larger profits. Thus it depends on the company how well it converts the assets to sales which can be determined through this ratio.
I. DEBTORS RATIO It represents the number of days required or taken to collect the credit sales which reflects the collection strategy of the company. It measure the collection period of account receivables
Debtors Debtors Ratio = --------------------- Credit Sales
2011-12 2012-13 2013-14
Debtors 3340.85 1537.42 1651.31
Turnover ratio help in knowing how well the company manages it resources. If the company manages its resources well, the larger will be its sales and thus helps in making larger profits. Thus it depends on the company how well it converts the assets to sales which can be determined through this ratio.
I. DEBTORS RATIO It represents the number of days required or taken to collect the credit sales which reflects the collection strategy of the company. It measure the collection period of account receivables
Debtors Debtors Ratio = --------------------- Credit Sales
2011-12 2012-13 2013-14
Debtors 3340.85 1537.42 1651.31