Efficiency Ratios Flashcards
1
Q
Non-current Asset Turnover (times)
A
Revenue / Net Book Value of Non-current Assets x100
2
Q
Trade Receivables Turnover (days)
A
(Trade Receivables / Credit Sales) × 365
3
Q
Trade Payables Turnover (days)
A
(Trade Payables / Credit Purchases) × 365
4
Q
Inventory Turnover (days)
A
(Average Inventory / Cost of Sales) × 365
5
Q
Rate of Inventory Turnover (times)
A
Cost of Sales / Average Inventory
6
Q
what to use if average inventory not available
A
Closing inventory
7
Q
cost of sales (2)
A
net sales- GP
Inventory turnover+avergae stock
8
Q
cost of sales (inventory)
A
opening inventory +purchases-C/I
9
Q
average inventory
A
opening inventory plus closing inventory/2
