Efficiency Ratios Flashcards
1
Q
Collection period for receivables
A
Trade receivables
——————– X365
Credit sales
2
Q
Inventories turnover period
A
Inventories held
——————- X365
Cost of sales
3
Q
Settlement period for payables
A
Trade payables
————– X365
Credit purchases
4
Q
Sales revenue to capital employed
A
Equity+ non-current liabs
5
Q
Sales revenue per employee
A
Number of employees