Instruction
1
To calculate turnover, you will need the data of the two main documents reflecting the financial activity of the company:
• The balance of the organization, from which you will take the value of specific assets;
• Statement of profit and loss (OPI), which shows the revenue and cost of sales.
2
When talking about the need to calculate the turnover, imply the importance of evaluating how efficiently a company uses its existing assets, commodities and other assets. Used every asset contributes to the ultimate revenue and to estimate this contribution using the turnover ratio. The most often counting five types of coefficients:
• turnover assets of the enterprise;
• turnover of inventory;
• the turnover of payables and receivables;
• turnover of fixed assets of the company.
3
To calculate turnover of a company's assets, divide the proceeds from OPI in the amount of the asset balance. You will see how much money in the final revenue brought by each unit of assets.
4
To calculate the turnover of inventory, divide the cost of goods sold from OPI on the value of inventories, taken from the balance.
5
To calculate the turnover of receivables, will split the proceeds from OPIE on the value of the receivables, taken from the company's balance sheet.
6
To calculate the turnover of accounts payable, divide the cost of goods sold (OPI) on the amount payable (balance).
7
To calculate the turnover of fixed assets of the company, will split the proceeds from OPIE on the value of fixed assets indicated in the balance sheet of the organization.