Turnover rates occupy one of the most important places among economic indicators by which the success and efficiency of any enterprise is assessed. They are calculated both by the internal services of the organization for control, and by external evaluators, for example, banks, when analyzing the company's creditworthiness.
Instructions
Step 1
To calculate the turnover, you will need data from two main documents reflecting the financial activities of the company:
• The balance sheet of the organization from which you will take the value of specific assets;
• Profit and Loss Statement (P&L), which shows the volume of revenue and cost of goods sold.
Step 2
When they talk about the need to calculate turnover, they imply the importance of assessing how effectively a company is using its assets, goods and other property. Each asset used contributes to the final revenue and the turnover ratio is used to assess this contribution. At the same time, five types of such fixed assets of the company are most often calculated.
Step 3
To calculate the turnover of the company's assets, divide the proceeds from the O&M by the amount of the balance sheet asset. You will see how much money each unit of assets brought in the final revenue.
Step 4
To calculate the turnover of inventory, divide the cost of goods sold from the O&M by the amount of inventory taken from the balance sheet.
Step 5
To calculate the turnover of accounts receivable, divide the proceeds from the O&M by the amount of accounts receivable taken from the company's balance sheet.
Step 6
To calculate the turnover of accounts payable of an enterprise, divide the cost of goods sold (OPiU) by the amount of accounts payable (balance).
Step 7
To calculate the turnover of fixed assets of the company, divide the proceeds from the O&M by the value of fixed assets indicated in the balance sheet of the organization.
