The turnover rate of accounts receivable, also known as the turnover times of accounts receivable, is the ratio of the net income of the main business of goods or products to the average balance of accounts receivable in a certain period, and it is an index reflecting the turnover speed of accounts receivable. Its calculation formula is:
Accounts receivable turnover rate = net income of main business ÷ average accounts receivable balance.
The turnover rate of accounts receivable reflects the realization speed and management efficiency of accounts receivable of enterprises. The higher the turnover rate, the higher the explanation:
(1) fast collection of accounts and short aging;
(2) Strong liquidity and short-term solvency;
(3) It can reduce the collection cost and bad debt loss, thus relatively increasing the investment income of current assets of enterprises. At the same time, by comparing the turnover period of accounts receivable with the credit period of enterprises, we can also evaluate whether the credit degree of purchasing units and the original credit conditions of enterprises are appropriate. When evaluating whether the turnover rate of enterprise accounts receivable is reasonable, it should also be compared with the average level of the same industry.
(2) Inventory turnover rate
Inventory turnover rate, also known as inventory turnover times, is the ratio of main business cost to average inventory balance in a certain period. It is an index that reflects the turnover speed and sales ability of enterprise inventory, and also a comprehensive index to measure the efficiency of inventory operation in enterprise production and operation.
The turnover rate of inventory not only reflects the management status of enterprises in all aspects of procurement, delivery, production and sales, but also has a decisive impact on the solvency and profitability of enterprises.
Generally speaking, the higher the inventory turnover rate, the better. The higher the inventory turnover rate, the faster the realization, the greater the turnover and the lower the capital occupation level. The lower the inventory occupation level, the smaller the risk of inventory backlog, and the better the liquidity and capital use efficiency of enterprises. However, when analyzing the inventory turnover rate, we should pay attention to eliminating the influence of different inventory pricing methods.
Extended data
Relevant principles
There are many indicators that reflect the asset operation ability of enterprises. In order to correctly analyze and evaluate the asset operation ability of enterprises, we must first correctly design the index system for evaluating the asset operation ability. The following principles must be followed when designing and selecting indicators to evaluate the operational capacity of assets:
1, the asset operation capability index should reflect the substantive requirements for improving the asset operation capability.
The essence of enterprise's asset operation ability is to produce as many products as possible with as few assets as possible, realize as much sales income as possible and create as much net income as possible.
2, asset operating ability indicators should reflect the characteristics of various assets.
The assets of an enterprise include fixed assets and current assets, both of which have their own characteristics. For fixed assets, we should consider the characteristics of their use value and value separation, and consider them from two aspects in index calculation; For current assets, it should mainly reflect the characteristics of liquidity.
3, asset operation ability indicators should be conducive to evaluation and analysis.
We should try our best to adopt the assessment indicators stipulated in the current system, or indicators that can be calculated and easily analyzed according to the existing accounting data, otherwise, no matter how good the indicators are, they will have no practical significance.
Baidu Encyclopedia-Analysis of Enterprise Operation Capability