What is Current Assets Turnover Ratio? What does it indicate?

What is Current Assets Turnover Ratio? What does it indicate?


Current Assets Turnover Ratio indicates that the current assets are turned over in the form of sales more number of times. A high current assets turnover ratio indicates the capability of the organization to achieve maximum sales with the minimum investment in current assets. Higher the current ratio better will be the situation.

Formula to calculate current assets turnover ratio = Liquid Assets/ Liquid Liabilities
Explain Working Capital Turnover Ratio. What does it indicate?
Working Capital Turnover Ratio indicates that working capital i.e difference between current assets and current liabilities…
What is Inventory/Stock Turnover Ratio? What does it indicate?
Formula to calculate inventory turnover ratio = Cost of goods sold/ Average inventory…
What is Debtors Turnover Ratio? What propositions should be kept in mind while working with them?
Debtors Turnover Ratio indicates the number of times average debtors are turned over during a year
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