efficiency ratios

Rate of inventory turnover

Cost of sales / Average inventory

Days-sales- in-inventory

Average inventory/Cost of sales X 365

Rate of Accounts receivable turnover

Net credit sales / Average net accounts receivables

Accounts receivable collection period

Average net accounts receivables / Net credit sales X 365

Rate of accounts payable turnover

Cost of sales / Average net accounts payables

Accounts payable payment period

Average net accounts payables / Cost of sales X 365

cash conversion cycle

Days-sales-in-inventory + Accounts receivable collection period – Accounts payable payment period