ASSET UTILIZATION RATIOS

Question 1

Receivable Turnover

Answer 1

Net Credit Sales
_____________
Average AR

Question 2

Receivables Collection Period RCP

Answer 2

Average AR
______________________
Average Credit Sales per day
(365 days)

Question 3

Inventory Turnover

Answer 3

COGS
________________
Average Inventory

Question 4

Inventory Conversion Period ICP

Answer 4

Average Inventory
__________________________
Average COGS per day

Question 5

Total Asset Turnover

Answer 5

Sales
__________________
Average Total Assets

Question 6

Fixed Asset Turnover

Answer 6

Sales
____________________
Average Net Fixed Assets (after depreciation)

Question 7

CCC Cash conversion cycle

Answer 7

ICP + RCP - PDP