Analysis Of Operational Capability Financial Indicators
1. accounts receivable turnover index.
Accounts receivable turnover rate is used to reflect the turnover rate of accounts receivable. It exists in practice. limit Sex:
First, it does not take account of the recovery time of accounts receivable, and can not accurately reflect the progress and equilibrium of annual accounts receivable.
Two, when sales are seasonal, especially when the difference between credit sales volume varies from year to year, this is the case.
index
The recovery of accounts receivable over the years can not be carried out.
continuity
Reflection;
Three, we can not provide timely information on accounts receivable turnover.
The index reflects the turnover of a certain period of time. It can only be calculated at the end of the year on the basis of annual sales and the average occupancy of accounts receivable.
2. inventory turnover index.
Inventory turnover is an indicator that reflects the strength of the enterprise's sales ability, whether the inventory is excessive and whether the assets have strong liquidity. It is also a comprehensive index to measure the efficiency of inventory operation in all links of production and operation.
In practice, the inventory valuation method has a greater impact on the inventory turnover rate. Therefore, when analyzing the inventory turnover rate of enterprises in different periods or different enterprises, we should pay attention to the consistency of inventory valuation methods.
In addition, in order to improve the rate of return on assets, business management may want to reduce inventory level and turnover period, sometimes influenced by human factors, which can not accurately reflect the operational efficiency of inventory assets.
At the same time, some related costs caused by excessive or low inventory level should not be neglected in the analysis. For example, low inventory level will lead to loss of customer reputation, sales opportunities and delayed production.
It is worth noting that high inventory levels and low inventory turnover do not necessarily indicate low efficiency in asset utilization.
The increase in inventories may be the result of a business strategy, such as prudent behavior due to shortages that may cause future supply disruptions, speculative actions to predict future price increases, and actions to meet the anticipated increase in demand for commodities.
In addition, for many enterprises that implement inventory control (such as just in time JIT) and zero inventories, the ratio will be meaningless.
- Related reading
- quotations analysis | China Light Textile City: Complex Fabric Marketing Highlights
- quotations analysis | China Light Textile City: The Coating Polyester Fabric Has Been In A Turmoil, And The Sales Of The Creative Fabrics Remain Unchanged.
- quotations analysis | China Light Textile City: Autumn And Winter Knitted Sweater Fabrics Dynamic Marketing Varieties Increased
- Fashion shoes | Hot Melt Bubble Air Foamposite Pro Shoes Exposure, Strong Color Style
- Fashion character | Kan'S New Album "Jesus Is King" Sells Products On The Periphery, Ancient Religious Designs.
- Fashion makeup | PORTER X MADNESS 2019 New Joint Bag Series Complete Announcement
- DIY life | Thom Browne X Givaudan Joint Perfume Series, All Men And Women Are Suitable.
- Popular color | Fashion Trend 2020 Spring And Summer Ladies Key Single Product
- Bullshit | New Bai Lun 990V5 Shoes 2019 Black-And-White Grey Matching Color Overseas Sale
- Shoe Market | Air Jordan 4 "Black Cat" All Black Color Shoes Released, The Material Is Not General.
- Analysis Of Financial Indicators For Debt Paying Ability
- YOUNGOR Employees Ask For Leave Three Times Before And After The Spring Festival Raises Controversy
- Reference Information Table Of Yarn Market In Liaoning West Liu Raw Material Market
- What Are The Conditions For Government Subsidies?
- What Is Investment Real Estate?
- Shoe Industry, Brand Bird Is Officially Hand In Hand With The New Asian Flying Man, Lao Yi.
- How To Determine The Standard Currency Of Enterprise Bookkeeping
- Wearing The Geometric Pattern &Nbsp; Highlighting The Stereoscopic Sense Of The Figure.
- Shoe Brand Adidas Launches 2011 War Boots For Howard And Ross
- Organizational Form Of Accounting