Compute operating turnover and days

Pair each reconciled operating flow with its average balance, convert turnover to days, and attach evidence requests to every interpretation.

Updated Aug 7, 2026 Review due Nov 7, 2026

The three turnover measures share a structure but not a numerator. Write the labels before entering values.

Formula map

Measure	Flow numerator	Average stock denominator	Days form
Receivables	Net credit sales	Accounts Receivable	DSO
Inventory	Cost of goods sold	Inventory	DIO
Payables	Credit purchases	Accounts Payable	DPO

For each average, use (opening + ending) ÷ 2 only after the two observations are aligned and the simple approximation is defensible. For each days measure, use days in period ÷ turnover and label the day basis.

Compute Aster Year 3

Use the turnover example to reproduce:

receivables turnover 6.70 times and DSO 54.47 days;
Inventory turnover 3.22 times and DIO 113.38 days; and
payables turnover 5.32 times and DPO 68.65 days.

Do not round turnover before converting to days. For example, 365 ÷ 6.70 = 54.4776..., displayed as 54.48 days, while the full-precision 6.701030927835052 result gives 54.46923076923077 days, displayed as 54.47. Display rounding is acceptable after the controlled calculation.

Interpret through distributions

The days outputs are aggregate equivalents. A DSO of 54.47 does not mean each invoice was paid after 54.47 days. DIO does not reveal each product's age. DPO does not identify overdue invoices. Aging schedules and transaction cohorts show the distributions that averages compress.

Use an evidence matrix:

Result moved	Accounting evidence	Operating/finance evidence
DSO	sales scope, allowance, write-offs	terms, aging, disputes, subsequent receipts
DIO	cost policy, write-downs, scope	demand, stockouts, aging, lead times
DPO	payable classification, purchase scope	terms, overdue status, discounts, payments

Directional traps

Higher turnover is not uniformly better. Faster Inventory turnover can coexist with stockouts. Faster receivable turnover can reflect restrictive credit. Longer DPO can conserve cash or breach terms. A professional conclusion names the result, its convention, at least two plausible paths, and evidence that would discriminate among them.

Complete the Inventory calculation, days check, and interpretation boundary.