Turnover Ratios

Turnover (activity) ratios relate a flow figure, such as sales or cost of goods sold, to the average balance of an asset. The main ones are:

• Inventory turnover = Cost of goods sold / Average inventory. Days in inventory = 365 / inventory turnover.
• Debtors (receivables) turnover = Net credit sales / Average debtors. Average collection period = 365 / debtors turnover.
• Creditors (payables) turnover = Net credit purchases / Average creditors.
• Fixed asset turnover = Net sales / Net fixed assets.
• Total asset turnover = Net sales / Average total assets.
• Working capital turnover = Net sales / Net working capital.

Higher turnover generally means assets are used more efficiently and less money is locked up. However, a very high inventory turnover can also signal stock shortages, and a very high debtors turnover can mean an overly strict credit policy that loses sales.

Bankers use these ratios when assessing working capital needs, because the operating cycle (inventory days plus collection days minus payment days) determines how much finance a borrower needs.

आवर्तन (क्रियाकलाप) अनुपातले बिक्री वा बिक्री लागत जस्ता प्रवाह अङ्कलाई सम्पत्तिको औसत मौज्दातसँग तुलना गर्छ:

• मौज्दात आवर्तन = बिक्री लागत / औसत मौज्दात।
• आसामी आवर्तन = खुद उधारो बिक्री / औसत आसामी; औसत असुली अवधि = ३६५ / आसामी आवर्तन।
• साहु आवर्तन = खुद उधारो खरिद / औसत साहु।
• स्थिर सम्पत्ति आवर्तन = खुद बिक्री / खुद स्थिर सम्पत्ति।
• कुल सम्पत्ति आवर्तन = खुद बिक्री / औसत कुल सम्पत्ति।

उच्च आवर्तनले सम्पत्तिको दक्ष उपयोग देखाउँछ। बैंकले चालु पुँजी आवश्यकता निर्धारण गर्दा सञ्चालन चक्र विश्लेषणका लागि यी अनुपात प्रयोग गर्छ।