Measuring efficiency Flashcards
1
Q
What are efficiency ratios
A
Measure of how the internal management are using/controlling financial assets
2
Q
What are trade receivable days
A
How long it takes on average for customers to pay for goods and services bought on credit
3
Q
What are trade payable days
A
Measure of how long it takes on average for the business to pay for supplies bought on credit
4
Q
What is inventory turnover
A
Measures how frequently a business turns over its inventory in a year
