Activity Ratios Flashcards

1
Q

Asset Turnover

A

Turnover / Net Assets

the higher the better

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2
Q

Stock Turnover

A

Cost of Sales / Stock

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3
Q

Debtor Collection Period

A

Debtors / Turnover

x 365

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4
Q

Creditor Payment Period

A

Creditors / Cost of Sales

x 365

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