Inventory turnoverCost of goods soldAverage inventory Inventory turnover Cost of goods sold. Honeywell International Inc., short-term (operating) activity ratios, average number of days Average inventory p. working capital turnover ratio improved from 2020 to 2021 and from 2021 to 2022. Inventory turnover ratio describes the average time during which products, semi-finished products, raw materials etc. In the wholesale and retail industry, companies place great value on working capital management to achieve a high turnover rate of current assets. cash conversion cycle deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. current (or working capital) ratio acid-test (quick) ratio. An activity ratio calculated as revenue divided by working capital. payables turnover ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022. number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023.Ī financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations equal to average inventory processing period plus average receivables collection period minus average payables payment period.Ĭostco Wholesale Corp. An activity ratio calculated as cost of goods sold divided by payables. working capital turnover ratio improved from Q4 2022 to Q1 2023 but then deteriorated significantly from Q1 2023 to Q2 2023. It is a measure of the ability of a business to use. An activity ratio calculated as revenue divided by working capital. The working capital turnover ratio is a ratio of the turnover of the business to its working capital. number of days of inventory outstanding deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.Īn activity ratio equal to the number of days in the period divided by receivables turnover.Įqual to average inventory processing period plus average receivables collection period.Īn estimate of the average number of days it takes a company to pay its suppliers equal to the number of days in the period divided by payables turnover ratio for the period.Ĭostco Wholesale Corp. Working capital turnover is defined as a ratio that measures how effectively a company utilizes its working capital to support its sales and revenue growth. payables turnover ratio increased from Q4 2022 to Q1 2023 and from Q1 2023 to Q2 2023. An activity ratio equal to the number of days in the period divided by inventory turnover over the period.Ĭostco Wholesale Corp.
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