Part Four, Part 18 - Efficiency Ratio Flashcards
1
Q
What are Financial efficiency ratios?
A
measures a businesses ability to efficiently manage its assets and liabilities
2
Q
What is the ratio for assets turnover?
A
revenue / non-current assets
3
Q
What is the formula for stock turnover?
A
cost of stock (or sales) / Average stock
4
Q
What is the formula for debtor days?
A
Trade receivables x 365 / Revenue (sales
5
Q
What is the formula for creditor days?
A
Trade payables x 365 / purchases
