Assuming that credit sales are sales not immediately paid in cash, the accounts receivable turnover formula is credit sales divided by average accounts receivable. The average accounts receivable ...

Investopedia / Zoe Hansen To calculate the receivables turnover ratio, a company needs to divide its net credit sales by its average accounts receivable. This gives an estimate of how often a ...

Also assume that cost of sales is £2000. Inventory turnover formula: \(\frac {\text{Cost of sales}} {\text{Average stock}} = \frac {£2000} {£2250} = 0.9~ \text{times per year}\) This is a low ...

You can use this formula to calculate the fixed asset turnover ratio of a company: Net sales ÷ average fixed assets = FAT Net sales: Total sales revenue after subtracting any returns. Average ...

Learn what asset turnover ratio is, the formula, how to calculate it and how it measures a company's efficiency in generating revenue from its assets.