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Financial
Ratios - Bean Counter
https://www.dwmbeancounter.com |
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Instructions |
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Enter the yearly amounts in
the Balance Sheet and Income Statements |
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The ratios are automatically
calculated |
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Note: The
divide by zero error will correct when data is entered. |
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Comparative
Balance Sheets |
PY3 |
PY2 |
PY1 |
CY |
|
Cash |
1500 |
1800 |
2200 |
2500 |
Marketable securities |
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Accounts receivable |
3000 |
3500 |
4000 |
4200 |
Inventory |
2500 |
2800 |
3200 |
3000 |
Total current assets |
7000 |
8100 |
9400 |
9700 |
Net fixed assets |
10000 |
11000 |
12000 |
13000 |
Total assets |
17000 |
19100 |
21400 |
22700 |
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Accounts payable |
2000 |
2300 |
2500 |
2700 |
Accrued liabilities |
1000 |
1200 |
1500 |
1300 |
Notes payable |
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Total current liabilities |
3000 |
3500 |
4000 |
4000 |
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Long-term debt |
5000 |
5500 |
6000 |
6500 |
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Capital |
4000 |
4000 |
4000 |
4000 |
Retained earnings |
5000 |
6100 |
7400 |
8200 |
Total equity |
9000 |
10100 |
11400 |
12200 |
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Total liabilities and equity |
17000 |
19100 |
21400 |
22700 |
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Comparative Income Statements |
PY3 |
PY2 |
PY1 |
CY |
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Sales |
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25000 |
28000 |
30000 |
Cost of sales |
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15000 |
16500 |
17000 |
Gross profit |
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10000 |
11500 |
13000 |
Selling expenses |
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General and admin expenses |
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7000 |
7500 |
8000 |
Operating profit |
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3000 |
4000 |
5000 |
Interest expense |
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500 |
600 |
700 |
Pre-tax income |
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2500 |
3400 |
4300 |
Income taxes |
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625 |
850 |
1075 |
Net income |
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1875 |
2550 |
3225 |
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Short term liquidity |
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Current ratio |
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Measures the ability to pay current
liabilities out of current assets. |
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Current assets |
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8100 |
9400 |
9700 |
/
Current liabilities |
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3500 |
4000 |
4000 |
=
Current ratio |
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2.31 |
2.35 |
2.43 |
Quick ratio (Acid Test) |
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Measures the ability to pay current
liabilities out of the most liquid of current assets. |
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(Cash |
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1800 |
2200 |
2500 |
+
Marketable secrities |
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0 |
0 |
0 |
+
Accounts receivable) |
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3500 |
4000 |
4200 |
/
Current liabilities |
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3500 |
4000 |
4000 |
=
Quick ratio |
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1.51 |
1.55 |
1.68 |
Accounts receivable turnover |
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Measures the ability to collect from
customers. |
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Annual net credit sales |
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25000 |
28000 |
30000 |
/
Average net account receivables |
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3250 |
3750 |
4100 |
=
Accounts receivable turnover |
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7.69 |
7.47 |
7.32 |
Average collection period
(Days Sales Outstanding) |
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Measures the average number of day that
it takes to collect accounts receivable. |
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365 days |
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365 |
365 |
365 |
/
Accounts receivable turnover |
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7.69 |
7.47 |
7.32 |
=
Average collection period (Days Sales Outstanding) |
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47.45 |
48.88 |
49.88 |
Inventory turnover |
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Measures the saleability of
inventory. Indicates the number of
time inventory is sold or "turned" per year. |
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Cost of goods sold |
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15000 |
16500 |
17000 |
/
Average inventory |
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2650 |
3000 |
3100 |
=
Inventory turnover |
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5.66 |
5.50 |
5.48 |
Days sales in inventory |
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Measures inventory levels based on days
sales. |
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365 days |
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365 |
365 |
365 |
/
Inventory turnover |
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5.66 |
5.50 |
5.48 |
=
Days sales in inventory |
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64.48 |
66.36 |
66.56 |
Inventory to net working
capital |
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Inventory |
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2800 |
3200 |
3000 |
/
Net working capital |
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4600 |
5400 |
5700 |
=
Inventory to net working capital |
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0.61 |
0.59 |
0.53 |
Long term solvency |
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Debt ratio |
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Indicates the percentage of assets
financed with debt or liabilities |
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Total liabilities |
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9000 |
10000 |
10500 |
/
Total assets |
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19100 |
21400 |
22700 |
=
Debt ratio |
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0.47 |
0.47 |
0.46 |
Times interest earned - income
(interest coverage) |
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Measures the ability to pay interest out
of profits. |
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Net income before interest expense and taxes |
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3000 |
4000 |
5000 |
/
Interest expense |
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500 |
600 |
700 |
=
Times interest earned - income (interest coverage) |
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6.00 |
6.67 |
7.14 |
Times interest earned - cash
flow (interest coverage) |
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Measures the ability to pay interest out
of cash flow. |
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Cash flow from operations and interest |
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3300 |
4400 |
5500 |
/
Interest expense |
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500 |
600 |
700 |
=
Times interest earned - cash flow (interest coverage) |
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6.60 |
7.33 |
7.86 |
Total assets to equity |
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Total assets |
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19100 |
21400 |
22700 |
/
Total stockholders equity |
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10100 |
11400 |
12200 |
=
Total assets to equity |
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1.89 |
1.88 |
1.86 |
Total liabilities to total
assets |
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Total liabilities |
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9000 |
10000 |
10500 |
/
Total assets |
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19100 |
21400 |
22700 |
=
Total liabilities to total assets |
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0.47 |
0.47 |
0.46 |
Total liabilities to equity |
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Total liabilities |
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9000 |
10000 |
10500 |
/
Total stockholders equity |
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10100 |
11400 |
12200 |
=
Total liabilities to equity |
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0.89 |
0.88 |
0.86 |
Interest bearing debt to total
assets |
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Interest bearing debt |
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5500 |
6000 |
6500 |
/
Total assets |
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19100 |
21400 |
22700 |
=
Interest bearing debt to total assets |
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0.29 |
0.28 |
0.29 |
Interest bearing debt to
equity |
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Interest bearing debt |
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5500 |
6000 |
6500 |
/
Total equity |
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10100 |
11400 |
12200 |
=
Interest bearing debt to equity |
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0.54 |
0.53 |
0.53 |
Long term debt to long term
capital |
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Long term debt / |
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5500 |
6000 |
6500 |
(Long term debt |
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5500 |
6000 |
6500 |
+
Total equity) |
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10100 |
11400 |
12200 |
=
Long term debt to long term capital |
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0.35 |
0.34 |
0.35 |
Profitability Ratios |
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Return on assets |
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Measures the effectiveness of assets used
to produce profits. |
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Net income |
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1875 |
2550 |
3225 |
/
Average total assets |
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18050 |
20250 |
22050 |
=
Return on assets |
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10.39% |
12.59% |
14.63% |
Return on equity |
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Measures the profitibility of owners
investments. |
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Net income |
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1875 |
2550 |
3225 |
/
Average stockholders equity |
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9550 |
10750 |
11800 |
=
Return on equity |
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19.63% |
23.72% |
27.33% |
Gross margin |
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Gross profit |
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10000 |
11500 |
13000 |
/
Sales |
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25000 |
28000 |
30000 |
=
Gross margin % |
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40.00% |
41.07% |
43.33% |
Operating margin |
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Operating profit |
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3000 |
4000 |
5000 |
/
Sales |
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25000 |
28000 |
30000 |
=
Operating margin |
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12.00% |
14.29% |
16.67% |
Profit margin |
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Measures the % of each $1 of revenue that
is left over as profit. |
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Net income |
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1875 |
2550 |
3225 |
/
Sales |
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25000 |
28000 |
30000 |
=
Profit margin |
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7.50% |
9.11% |
10.75% |
Total asset turnover |
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Measures the efficiency of assets used to
produce sales. |
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Sales |
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25000 |
28000 |
30000 |
/
Average total assets |
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18050 |
20250 |
22050 |
=
Total asset turnover |
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1.39 |
1.38 |
1.36 |
Fixed assets turnover |
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Measures the efficiency of fixed assets
used to produce sales. |
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Sales |
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25000 |
28000 |
30000 |
/
Average fixed assets |
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10500 |
11500 |
12500 |
=
Fixed asset turnover |
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2.38 |
2.43 |
2.40 |
Current asset turnover |
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Sales |
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25000 |
28000 |
30000 |
/
Average current assets |
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7550 |
8750 |
9550 |
=
Current asset turnover |
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3.31 |
3.20 |
3.14 |
DuPont Return on Investment |
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Net income |
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1875 |
2550 |
3225 |
/
Average total assets |
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18050 |
20250 |
22050 |
=
Return on investment |
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10.39% |
12.59% |
14.63% |
or |
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Net profit margin |
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0.08 |
0.09 |
0.11 |
/
Total asset turnover |
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1.39 |
1.38 |
1.36 |
=
Return on investment |
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10.39% |
12.59% |
14.63% |
Modified DuPont - Return on
Equity |
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Net profit after tax |
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1875 |
2550 |
3225 |
/
Average stockholders equity |
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9550 |
10750 |
11800 |
=
Return on equity |
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19.63% |
23.72% |
27.33% |
or |
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Average total assets |
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18050 |
20250 |
22050 |
/
Average equity |
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9550 |
10750 |
11800 |
=
Equity mutliplier |
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1.89 |
1.88 |
1.87 |
x
ROI |
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0.10 |
0.13 |
0.15 |
=
Return on equity |
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19.63% |
23.72% |
27.33% |
Other Ratios |
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Accounts payable turnover |
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Total purchases |
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16500 |
18000 |
18750 |
/
Average accounts payable |
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2150 |
2400 |
2600 |
=
Accounts payable turnover |
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7.67 |
7.50 |
7.21 |
Days purchases in accounts payable |
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365 days |
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365 |
365 |
365 |
/
Account payable turnover |
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7.67 |
7.50 |
7.21 |
=
Days purchases in accounts payable |
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47.56 |
48.67 |
50.61 |
Days in Cash Operation Cycle |
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Average collection period (Days Sales Outstanding) |
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47.45 |
48.88 |
49.88 |
+
Days sales in inventory |
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64.48 |
66.36 |
66.56 |
-
Days purchases in accounts payable |
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-47.56 |
-48.67 |
-50.61 |
=
Days in Cash Operation Cycle |
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64.37 |
66.58 |
65.83 |
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