Financial Accounting

Financial Ratios | |Ratio | |Definition | |Ratio Name | | | | |Measures of legal action | | | | |Accounts Receivable |Net Credit Sales / Avg. Net A/R | |Net consultation sales = gross credit sales - sales returns + sales discounts. This ratio | | | | |is used to peg down how quickly cash is received from customers. A high ratio means| | | | |that A/R is being turned everywhere quickly. This is only good if a confederation makes credit | | | | |sales. | |Avg.

show Period |365 / A/R employee turnover | | | |Inventory Turnover |COGS / Avg. Inventory | |How many propagation during the period that a company completed the purchasing cycle. | | | | |(From the purchase of inventory to sale) A high ratio means inventory turns over | | | | |more times or sells faster. Extremely high isnt good. That means there isnt adequacy| | | | |merchandise on hand | |Avg. Selling Period |365 years / Inventory Turnover | |... If you want to get a good essay, order it on our website: Orderessay

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