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Inventory turnover and Fixed Assets turnover Ratio
I've seen for inventory turnover it's the COGS which is used in the formula but for Fixed Assets turnover it's the Net sales considered, even though the book shows its either cogs or sales in both situation. Any help regarding this?
Replies (7)
Inventory / cos is usual. If you don’t have cos, you can use sales. But you must use this consistently. These are efficiency ratios and inventory turnover tells us number of days and asset turnover shows how 1 unit of asset produced sales
Inventory turnover ratio
asset turnover ratio
asset turnover ratio
Sabyasachi mukherjee • 13 January 2024
Inventory turnover ratio
asset turnover ratio
Inventory turnover ratio
asset turnover ratio
Cost of goods sol/ average inventory
asset .opening plus closing divided by two/cost of goods sold
asset .opening plus closing divided by two/cost of goods sold
I think one is percentage and the other times
I heard all jobs will be automated including CA. Ratios will automatically be calculated by one person. Automation makes life easier and wages lighter
Not very true
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