Financial Treatment: The Ratio Reflecting Operational Capacity

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Turnover rate accounts receivable turnover rate reflects the ratio of accounts receivable turnover speed, there are two ways of expression: accounts receivable turnover times and accounts receivable turnover days.

(1) calculate and evaluate the turnover times of accounts receivable and reflect the number of accounts receivable turnover times to reflect the average number of accounts receivable in the year.

The formula is: accounts receivable turnover = net sales receivable average balance of receivables, including net sales revenue = sales revenue, sales rebate, discount, discounted accounts receivable average balance = (initial accounts receivable + end accounts receivable) 2. Note: the average balance of accounts receivable is that the amount of accounts receivable that accounts for bad debts are not accounted for, and the number of accounts receivable turnover is a positive indicator. The more turnover times, the stronger the liquidity of accounts receivable, the stronger the liquidity of accounts receivable.

The higher the number of turnover times, the weaker the liquidity of accounts receivable, the lower the management level of accounts receivable.

(2) calculation of the turnover days of accounts receivable and evaluation of the turnover days of accounts receivable to reflect the days required for the average cash realisation of accounts receivable in the year.

The formula is: the number of accounts receivable turnover days =360 / the number of accounts receivable = the average balance of accounts receivable average 360 * sales income net receivable turnover days is an inverse indicator, the less turnover days, the more turnover times, indicating that the stronger the liquidity of accounts receivable, the higher the management level of accounts receivable. The more turnover days and fewer turnover times, the weaker the liquidity of accounts receivable, the lower the management level of accounts receivable.

2. inventory turnover and inventory turnover are the ratio of inventory turnover. There are two ways of expression: inventory turnover and inventory turnover days.

(1) the calculation and evaluation of inventory turnover times and the number of inventory turnover times reflect the number of average turnover of goods in the year. The calculation formula is: inventory turnover times = sales cost average stock. Average inventory = (initial inventory + end inventory) 2. The more inventory turnover times, the faster turnover of inventory, the higher profits of enterprises, the higher the inventory management level of enterprises. The less turnover of inventory, the more funds the enterprises occupy in inventory, the lower the inventory management level.

(2) the number of days of inventory turnover and the number of days in which the inventory turnover days reflect the average annual turnover of inventory. The calculation formula is: inventory turnover days =360 * inventory turnover times = average inventory 360 * sales cost less inventory turnover days, the more turnover times, the faster turnover of inventory, the corresponding increase in profits realized by enterprises, the higher inventory management level of enterprises, the more turnover days of inventory, the less turnover times, indicating that the more funds the enterprises occupy in inventory, the lower the inventory management level.

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(1) directly based on the general ledger balance: dividends payable, short-term loans, notes payable.

(two) according to the balance of accounts, calculate the "Monetary Fund" item = Cash + bank deposits + other monetary fund "other receivables" items = other receivables, provision for bad debts, "inventory" items = goods in pit + inventory commodities + production costs, inventory depreciation, fixed assets items = fixed assets - accumulated depreciation - fixed assets impairment reserve intangible assets project = intangible assets - cumulative amortization - intangible assets impairment provision

(three) according to the detailed account balance analysis, the total amount of accounts receivable = (accounts receivable + advance accounts) borrowers Collectible bad debts preparation (part of the accounts receivable)

Accounts receivable = (accounts receivable + advance accounts) credits total accounts payable = (accounts payable + prepaid accounts) credits total advance payment account = (accounts payable + prepaid accounts) borrowers total deferred expenses = deferred charges + debit + prepaid debit + + for a long term pending expiry within one year with accrued expenses = prepaid expenses + lenders + debit credit.