Key Terms Inventory turnover
3.7a Inventory Turnover
Inventory turnover
Since management can anticipate that
Omar’s business started the year with SAR
3.7b Receivables Turnover
Sarah’s online electronics business has annual sales of SAR 1,500,000 and accounts receivable of SAR 225,000.
Receivables turnover
3.7c Fixed Asset and Total Asset Turnover
Fixed asset turnover
Total asset turnover
Rasheed’s technology company has sales of SAR 25,689,000, fixed assets of SAR 2,800,000, and total assets of SAR 5,000,000.
A measure used to gauge how efficiently accounts receivable are being collected is receivables turnover.
An inventory turnover ratio of 8.2 means that:
