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Wednesday, February 3, 2010

Cash Turnover Ratio

Cash Turnover Ratio

Formula to calculate cash turnover ratio:

Cash Turnover = (cost of sales {excluding depreciation}) / cash.



Cash Turnover Ratio = (365 days)/ cash balance ratio.



Cash turnover ratio definition and explanation:
The cash turnover ratio indicates the number of times that cash turns over in a year.

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