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
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
3
Q
Creditor Days
A
Measures on average the number of days it takes a firm to pay off its creditors
4
Q
Gearing Ratio
A
Measures the extent to which the capital employed by a firm is financed from loan capital