Efficiency/ Working capital Formula's

Question 1

Sales revenue to Capital employed?

Answer 1

Sales revenue / Capital employed

Question 2

Inventory Turnover days?

Answer 2

Average inventory X 365 / Cost of sales

Question 3

Trade receivable days ?

Answer 3

Average trade receivable X 365 / Credit sales

Question 4

Trade payable days?

Answer 4

Average trade payable X 365 / Purchases ( cost of sales)