Activity ratios

Question 1

Days inventory outstanding (DIO)

Answer 1

(inventory/COGS)*365

Question 2

Inventory turnover

Answer 2

COGS/inventory

Question 3

Days sales outstanding (DSO)

Answer 3

(Accounts receivable/sales)*365

Question 4

Accounts receivable turnover

Answer 4

Sales/Accounts receivable

Question 5

Days payable outstanding (DPO)

Answer 5

(Accounts payables/Purchases)*365

Question 6

Account payable turnover

Answer 6

Purchases/Account payable

Question 7

Asset turnover ratio

Answer 7

Sales/Total Assets

Question 8

Cash conversion cycle

Answer 8

Days inventory outstanding + days sales outstanding- days payable outstanding

Question 9

Puchases

Answer 9

COGS + change in inventory