# Analysis report Liquidity analysis Part B

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1. Account Receivables Turnover in Days =Average Gross Receivables/Net Sales/365
 Year Calculation Account Receivables Turnover in days 2010 40570462/1387004223/365 10.68 2009 14527963.5/1379043093/365 13.99 2008 18969417.5/953846228/365 6.46 2007 18969417.5/747731624/365 9.26 2006 18130914/913370379/365 7.24

Working Note:-

Average Gross Receivables = (Opening Gross Receivables + closing Gross Receivables)/2

Gross Receivables = Net Account Receivables + Allowances for doubtful debts

Average gross R/A:

2010       (14461213+66679711) /2 =40570462

2009       (14594714+14461213)/2 =14527963.5

2008       (19189771+14594714)/2 =18969417.5

2007       (18749064+19189771)/2 =18969417.5

2006(17512764+18749064)/2 =18130914

1. Days Sales in Inventory =Ending Inventory/Cost of Goods sold /365
 Year Calculation Days Sales in Inventory 2010 124202630/1360587791/365 33.32 2009 92361838/1196613437/365 28.17 2008 358439549/918892642/365 142.38 2007 176012852/786936769/365 81.64 2006 218956788/775729109/365 103.02

5.    Inventory turnover = Cost of Goods sold/Average Inventory

 Year Calculation Inventory turnover 2010 1360587791/170383549 7.99 2009 1196613437/271581613 4.41 2008 918892642/446445975 2.05 2007 786936769/285491246 2.76 2006 775729109/142697042 5.44

Average inventory= (opening inventory+ ending inventory)/2

2010       (92361838+124202630)/2 =170383549

2009       (358439549+92361838)/2 =271581613

2008       (176012852+358439549)/2 =446445975

2007       (218956788+176012852)/2 =285491246

2006       (66437296+218956788)/2 =142697042

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