3.6 Efficiency Ratio Analysis Flashcards

1
Q

Stock Turnover Ratio

A

Measures how quickly a firm’s stock is sold and replaced over a given period of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Debtor Days

A

Measures on average the number of days it takes for a firm to collect its debts from debtors who purchased goods on credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Creditor Days

A

Measures on average the number of days it takes a firm to pay off its creditors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Gearing Ratio

A

Measures the extent to which the capital employed by a firm is financed from loan capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly