efficiency ratios Flashcards
1
Q
inventories turnover period
A
inventories/ cost of sales X365
2
Q
settlement period for receivables
A
trade receivables/credit sales revenue X365
3
Q
settlement period for payables
A
trade payables/ credit purcheses X365
4
Q
sales revenue to capital employed (net asset turnover ratio)
A
sales revenue/ equity + non current liabilities
5
Q
sales revenue per employee
A
sales revenue / average number of employees
