The following selected company information was reported:
Calculate the following company ratios:
(a) Accounts receivable turnover
(b) Inventory turnover
(c) Days' sales uncollected
Definitions:
Operating Income
The profit realized from a business's operational activities, calculated before interest and taxes.
Operating Leverage
A measure of how revenue growth translates into growth in operating income, indicating the degree to which a company can increase profit by increasing sales.
Variable Costs
Charges that shift in alignment with the volume of production or service tasks.
Operating Income
Earnings before interest and taxes (EBIT), a measure of a company's profit generated from its core operations excluding the effects of financing and taxes.
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