Check sibling questions
Accounts and Finance
Step 7 Ratio Analysis

These ratios calculated with the help of items of both Profit and Loss and Balance Sheet.

 

Example

Debtor Turnover Ratio=

Net Sales/Debtors

 

Example 1

Suppose Company has a Sales of 140 lacs

Sales Return=20 lacs

It has debtors of 30 lacs

What is Debtor Turnover Ratio?

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 12 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.