activity ratio

Inventory Turnover

Cost of Sales (COGS) / Average Inventory; measures how efficiently inventory is managed.

Days of Inventory on Hand (DOH)

Number of Days in Period / Inventory Turnover; indicates how many days inventory is held before being sold.

Receivables Turnover

Revenue / Average Receivables; shows how efficiently receivables are collected.

Days of Sales Outstanding (DSO)

Number of Days in Period / Receivables Turnover; measures the average number of days to collect receivables.

Payables Turnover

Cost of Sales (COGS) / Average Trade Payables; evaluates how efficiently a company pays its suppliers.

Number of Days of Payables

Number of Days in Period / Payables Turnover; shows how long a company takes to pay its suppliers.

Working Capital Turnover

Revenue / Average Working Capital; measures efficiency in using working capital.

Fixed Asset Turnover

Revenue / Average Net Fixed Assets; indicates how well fixed assets generate revenue.

Total Asset Turnover

Revenue / Average Total Assets; measures overall efficiency in using total assets to generate revenue.

Turnover Ratio

A higher turnover ratio suggests better efficiency, while a lower turnover ratio may indicate inefficiency or excessive investment in assets.