Turnover ratio

Definition :

Inventory turnover ratio = (sales O.G. taxes included / inventories) x 365.
This ratio calculates the speed at which inventories circulate in days

Turnover ratio of outstanding customer credit = (customer debt + undue discounted bills) / (sales O.G. taxes included) x 365
This ratio expresses in days the average duration of credit taken out by customers = DSO

Turnover ratio of outstanding supplier credit = (supplier accounts + payable bills) / (purchases taxes included) x 365
This ratio expresses in days the average duration of credit granted to suppliers