EDGAR Pro - Help - Activity Ratios

Help - Activity Ratios

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
      - Current Valuation Ratios
      - Liquidity Ratios
      - Profitability Ratios
      - Leverage Ratios
    • Financial Comparison

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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)