Period to Average Inventory Period = payment period /
average inventory period
period to average inventory period above 1:1 (100%)
indicates that the inventory is sold before it is paid
for (inventory does not need to be financed).
(the average inventory period is also known as the
inventory holding period)
inventory period, payment period
and payment period to average inventory period ratios
are included in the financial statement ratio
analysis spreadsheets highlighted in the left column,
which provide formulas, definitions, calculation, charts
and explanations of each ratio.
The payment period to average inventory period ratio
is listed in our efficiency
|The payment period to
average inventory period ratio and other ratios are key
to understanding financial statements. Our
ratio calculation spreadsheets reduce time
and effort in calculating decision making
ratios. They reduce risk for lenders and
investors and enable owners, managers and
consultants to increase productivity and
business profits. These spreadsheets are
bargain priced to provide a huge return
on investment. Click
here for more details.
of ratios , or the financial statement ratio
analysis spreadsheets which are not highlighted in the
left column, to see which other ratios are calculated
and explained in our spreadsheets.
The payment period to
average inventory period ratio may be included
custom 1, 3 or 5 period financial
statement ratio analysis spreadsheet.
to order excel
accounting spreadsheet to calculate 15 ratios with
formulas, definitions, calculations, charts, and
explanations for each ratio.
Order free 3 ratio
calculator spreadsheet. Current, quick and
debt-to-equity ratios with formulas, calculations,
charts and explanations. Email
us at email@example.com.