Inventory Turnover (ITO) = or = 6 six times a year, 6 X
Receivable Turnover (RTO) = 10 times a year, 10 X
Payable Turnover (PTO) = = 12 times a year, 12 X
Inventory Conversion Period =??
Receivable Collection Period =??
The accounts receivable period is the time required to collect payment on a credit sale. Credit policy is a primary determinant of the accounts receivable period via its relationship to the average collection period and sales.
Payable Deferral Period =??
Cash Conversion Cycle =??
Inventory Conversion Periodor Day Inventory Outstanding (DIO)=