Efficiency Flashcards
1
Q
Payable Days
A
= Trade payable’s / cost of sales x 365
2
Q
Receivable Days
A
= Trade Receivables / Sales Revenue x 365
3
Q
Inventory Turnover
A
= Cost of Sales / Average inventory
Payable Days
= Trade payable’s / cost of sales x 365
Receivable Days
= Trade Receivables / Sales Revenue x 365
Inventory Turnover
= Cost of Sales / Average inventory