CC Lim asked 1 month ago
I would like to calculate these 3 values:
- Inventory Turnover Ratio
- Accounts Receivable Turnover Ratio
How can I get the Average Inventory Value for Inventory Turnover Ratio and Average Account Receivable for Accounts Receivable Turnover Ratio for Sheng Siong? I would like to compare it to other supermarket operator?
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1 Answers
Rusmin Ang Staff answered 1 month ago
Hi CC,
Yep, that's right! Remember to multiply them by 365 days.
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I attached the cashflow and balance sheet sections of SS annual report FY 2023.
To get the [Average Inventory Value] to calculate [Inventory Turnover Ratio], do I take the inventory of 2023 and add to the inventory of 2022 and divide by two?
And to get the [Average Account Receivable] for [Accounts Receivable Turnover Ratio], i should take the account receivables of 2023 and add to account receivable of 2022 and divide by two?