In this tutorial, we have covered three key turnover ratios: receivables turnover ratio, inventory turnover ratio, and accounts payable turnover ratio. Their meanings, formulas, calculations, and interpretations are also covered in depth.What are Turnover Ratios?--------------------------------------------Turnover ratios evaluate how effectively a company's facilities, including its assets and liabilities, are used. Inventory turnover ratios, receivables turnover ratios, accounts payable turnover ratios, and so on are examples of turnover ratios.Turnover Ratios Formulas--------------------------------------------Accounts Receivable Turnover Ratio Formula = Net Credit Sales / Average Accounts Receivables Inventory Turnover Ratio Formula = Cost of Goods Sold / Average Inventory Accounts Payable Turnover Formula = Purchases / Average Accounts PayablesRelevance and Use--------------------------------------------- The receivables turnover ratio indicates how quickly a company can convert receivables into cash.- The inventory turnover ratio is a measure of how quickly a company can sell its inventory.- Accounts payable turnover ratio reflects how quickly a company pays its suppliers and, as a result, how well it manages its debts and cash flow.For more details, you can refer to our article - https://www.wallstreetmojo.com/turnover-ratios-formula/Connect with us! YouTube https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUwLinkedIn https://www.linkedin.com/company/wallstreetmojo/mycompany/Facebook https://www.facebook.com/wallstreetmojoInstagram https://www.instagram.com/wallstreetmojoofficial/?utm_medium=copy_linkTwitter https://twitter.com/wallstreetmojo