单项选择题 List the formula for ( ) A. the current ratio B. the accounts receivable collection period C. the quick ratio D. the inventory turnover period 点击查看答案
1. Average Inventories Turnover period= Average inventory/COGS *365 2. Average settlement period for AR= Average AR/Credit Sales *365 3. Average settlement period for AP= Average AP/Credit Purchases *365 Liquidityratios 1. Current ratio= CA/CL 2. Liquid ratio= (CA- Prepayment-inventory)/CL...
Average inventory= (Beginning inventory + Ending inventory) / 2 Cost of Salesis also known asCosts of Goods Sold Days in Periodmeans the number of days in the period, such as an accounting period, that is being examined – the period may be any time frame – a week, a quarter, or an...
period. DSI is calculated based on the average value of the inventory and cost of goods sold during a given period or as of a particular date. Mathematically, the number of days in the corresponding period is calculated using 365 for a year and 90 for a quarter. In some cases, 360 ...
The turnover ratio is derived from a mathematical calculation, where the cost of goods sold is divided by the average inventory for the same period. A higher ratio is more desirable than a low one as a high ratio tends to point to strong sales. ...
Inventory turnover rate = (use amount / inventory amount) * 100% The use of the amount or the amount of inventory or when the amount of the provision for a certain period of time to study the amount, use the following formula: Inventory turnover rate = (the total amount during the ...
金融 Final Exam Formula Sheet
Step 1. Historical Inventory Days Calculation Example Suppose you’re tasked with forecasting a company’s ending inventory for a five-year period given the following historical data. Historical Data2020A2021A2022A Cost of Goods Sold (COGS) ($80 million) ($100 million) ($140 million) Inventory...
DSI=1inventory turnover×365daysDSI=inventory turnover1×365days Basically, DSI is an inverse of inventory turnover over a given period. Higher DSI means lower turnover and vice versa. In general, the higher the inventory turnover ratio, the better it is for the company, as it indicate...
The leverage ratio—or debt-to-EBITDA ratio—is calculated by dividing the total debt balance by EBITDA in the coinciding period. Debt to EBITDA Ratio = Total Debt ÷ EBITDA Here, EBITDA is used as a proxy for operating cash flow, and the question being answered is: “Is the company’s...