Working capital turnover An activity ratio calculated as revenue divided by working capital. ROI Tints Ply’s working capital turnover improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012. Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. ROI Tints Ply’s average inventory processing period deteriorated from 2010 to 2011 and from 2011 to 2012. Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
ROI Tints Ply’s average receivable collection period improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012. Operating cycle Equal to average inventory processing period plus average receivables collection period. ROI Tints Plus operating cycle improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012. Average payable payment period An estimate of the average number of days it takes a company to pay Its suppliers; equal to the number of days in the period divided by payable turnover ratio for the period.
Roll Tints Plus average payable payment period Increased from 2010 to 2011 and from 2011 to 2012. Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash Invested In Its operations to cash received as a result of Its operations; equal to average Inventory processing period plus average receivables collection period minus average payable payment period. Roll Tints Ply’s cash conversion cycle Improved from 2010 to 2011 but then deteriorated significantly from 2011 to 2012.
