Calculating performance indicators Flashcards
1
Q
Inventory holding period in days
A
Inventory/Cost of sales x 365
2
Q
Working capital cycle
A
Inventory days + receivable days - payable days
3
Q
Return on capital employed
A
Profit/capital(or net assets) x 100
4
Q
Operating profit margin
A
Profit/sales revenue x 100
5
Q
Asset turnover (net assets)
A
Revenue/Total assets - current liabilities
6
Q
Trade receivables period in days
A
trade receivables/revenue x 365
7
Q
Trade payables period in days
A
trade payables/cost of sales x 365
