Ratio | Definition/Calculation |

Accounts Receivable Turnover | The average number of times receivables are collected by the company throughout the year. (Total Revenue / Average Net Receivables) |

Average Collection Period (days) | The average number of days it takes the company to collect receivables. (365 / Accounts Receivable Turnover) |

Inventory Turnover | The average number of times inventory is sold throughout the year. (Cost of Revenue / Average Industry) |

Days of Inventory (days) | The average number of days it takes the company to sell its inventory. (365 / Inventory Turnover) |

Operating Cycle (days) | The average number of days it takes the company to convert the acquisition of inventory into cash. (Average Collection Period + Days of Inventory) |

Net Working Capital Turnover | The ability of the company to generate revenues from its working capital. (Total Revenue / Average Net Working Capital) |

Total Asset Turnover | The ability of the company to generate revenues from its assets. (Total Revenue / Average Total Assets) |

Fixed Asset Turnover | The ability of the company to generate revenues from its fixed assets. (Total Revenue / Average Fixed Assets) |

Accounts Payable Turnover | The average number of times the company pays its suppliers throughout the year. (Cost of Revenue / Average Accounts Payable) |

Accounts Payable Turnover (days) | The average number of days it takes the company to pay its suppliers. (365 / Accounts Payable Turnover) |

Cash Turnover | The efficiency of the company to utilize its cash. (Total Revenue / Average Cash and Cash Equivalents) |

Cash Turnover (days) | The average number of days of cash on hand. (365 / Cash Turnover) |

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**View Related Help Topics**

• Balance Sheet

• Income Statement

• Cash Flow

• Financial Ratios

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• Financial Comparison