Accounts receivable turnover (times) = sales income (or credit income) ÷ average accounts receivable.
Average collection period =360÷ accounts receivable turnover rate = (average accounts receivable ×360)÷ sales revenue.
Average balance of accounts receivable = (opening balance of accounts receivable+closing balance of accounts receivable) ÷2
The calculation formula of inventory turnover rate is:
Cost-based inventory turnover times = operating cost/average inventory balance
Inventory turnover times of revenue base = operating income/average inventory balance
These include:
Average inventory balance = (beginning inventory+ending inventory) /2
Inventory turnover of revenue basis-inventory turnover of cost basis = gross profit/average inventory balance
Extended data:
The turnover rate of accounts receivable is a ratio reflecting the turnover rate of accounts receivable of enterprises, which is used to measure the average number of times that accounts receivable of enterprises are converted into cash in a certain period of time. The formula is: accounts receivable turnover rate (times) = sales revenue ÷ average accounts receivable.
The turnover rate of accounts receivable expressed in time is called the average recovery period, which is also called the average recovery period of accounts receivable or the average cash recovery period. The formula is: average recovery period = 360÷ accounts receivable turnover rate = (average accounts receivable ×360)÷ sales revenue.
The sales income in the formula should be the sales income in Leland table, including cash sales income and credit sales income. The reasons for this processing are: first, the data is easy to obtain and objective; Second, it avoids the trouble and human error caused by estimating the current cash sales income or credit sales income one by one.
References:
Accounts receivable turnover _ Baidu Encyclopedia? Inventory turnover rate _ Baidu Encyclopedia