Activity Ratios

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Question Answer
Days of sales outstanding - DSO
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# of days in period / Receivables turnover
Receivables Turnover
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Revenue / Average receivables
Inventory turnover
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Cost of sales or cost of goods sold / Average inventory
Days of inventory on hand - DOH
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# of days in period / Inventory turnover
Payables turnover
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Purchaches / Average trade payables
Number of days of payables
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# of days in period / Payables turnover
Fixed asset turnover
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Revenue / Average net fixed assets
Total asset turnover
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Revenue / Avg. total assets
Operating cycle
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DSO + DHO

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