3.6 Flashcards

1
Q

Inventory (stock) turnover ratio

A

(Cost of goods sold)/ (inventory level)

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2
Q

Debtor days (days sales in receivables) ratio

A

(Debtors [accounts receivable] x 365)/ (revenue)

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3
Q

Creditor days (accounts payable) ratio

A

(Trade creditors)/(credit purchases) x 365

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