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mission
Essay specific features
Written by:
Lola E
Date added:
May 10, 2016
Level:
University
Grade:
B
No of pages / words:
8 / 2000
Was viewed:
2356 times
Rating of current essay:
Essay content:
Debt Collection Period
Meaning, Objective and Method of Calculation: -
1. Capital Turnover Ratio: Capital turnover ratio establishes a relationship between net sales and capital employed. The ratio indicates the times by which the capital employed is used to generate sales. It is calculated as follows: -
Capital Turnover Ratio = Net Sales/Capital Employed
Where Net Sales = Sales – Sales Return
Capital Employed = Share Capital (Equity + Preference) + Reserves and Surplus + Long-term Loans – Fictitious Assets...
displayed 300 characters
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It is calculated as follows: -
Capital Turnover Ratio = Net Sales/Capital Employed
Where Net Sales = Sales – Sales Return
Capital Employed = Share Capital (Equity + Preference) + Reserves and Surplus + Long-term Loans – Fictitious Assets.
Objective and Significance: The objective of capital turnover ratio is to calculate how efficiently the capital invested in the business is being used and how many times the capital is turned into sales...
displayed 300 characters
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