Financial Data about individuals like past Months Bank Statement, Tax return receipts helps banks to understand customerвЂ™s credit quality, repayment capacity etc. gives you the following financial information Financial Information Financial Information refers to the summarized data of monetary transactions that is helpful to investors in understanding companyвЂ™s profitability, their assets, and growth prospects. The Capital Employed Turnover Ratio is 2, and Working Capital Turnover Ratio is 2.

In order to calculate the asset turnover ratio, we should follow the following steps:Д¬alculation of Capital Employed Turnover Ratio Working Capital Turnover Ratio = Sales / Working Capital #5 вЂ“ Asset Turnover Ratio

Step 3: Compute the working capital turnover ratio by using the formula mentioned below: Working Capital = Current Assets вЂ“ Current Liabilities Step 2: Calculate the working capital by using the formula mentioned below: This refers to the total amount of sales conducted by a firm in a given period of time. In order to calculate the working capital turnover ratio, the following steps are required to be followed: Step 3: Calculate the capital employed turnover ratio by using the formula mentioned below:Д¬apital Employed Turnover Ratio = Sales / Average Capital Employed #4 вЂ“ Working Capital Turnover Ratio Step 2: Compute the average capital employed by using the formula mentioned below:ДЄverage Capital Employed = Opening Capital Employed+Closing Capital Employed/2 Receivables Turnover Ratio = Credit Sales / Average Accounts Receivable #3 вЂ“ Capital Employed Turnover Ratio Step 3: Calculate the receivables turnover ratio by using the formula mentioned below: Step 2: We should compute the average accounts receivable by using the formula:ДЄverage Accounts Receivable = Opening Accounts Receivable + Closing Accounts Receivable /2 Credit Sales are the purchases made by the customers for which payment is given on a later date and is hence delayed. It gives them the required time to collect money & make the payment. Step 1: Calculate the total credit sales Credit Sales Credit Sales is a transaction type in which the customers/buyers are allowed to pay up for the bought item later on instead of paying at the exact time of purchase. In order to calculate the receivables turnover ratio, we should systematically follow the steps mentioned below: Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory #2 вЂ“ Receivables Turnover Ratio The result can be obtained by using the formula mentioned below: Step 3: The inventory turnover ratio is required to be calculated. read more should be calculated by using the formula mentioned below:ДЄverage Inventory = Opening Inventory + Closing Inventory/2 It helps the management to understand the inventory that a business needs to hold during its daily course of business. Step 2: The average inventory Average Inventory Average Inventory is the mean of opening and closing inventory of a particular period. read more for the period.Д¬ost of Goods Sold = Beginning Inventory + Purchases During the Period вЂ“ Ending Inventory. It is evaluated by deducting the cost of goods sold from the total of beginning inventory and purchases. TheВ cost of goods sold is computed by adding the beginning inventory to the purchases made during the period and subtracting the ending inventory Ending Inventory The ending inventory formula computes the total value of finished products remaining in stock at the end of an accounting period for sale. Step 1: We need to calculate the cost of goods sold.

Turnover ratio formula