2. Efficiency Ratios (5-8)
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8 Terms
1
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What does Inventory Days show
Shows how long inventory is held
2
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Formula for Inventory Days
Inventory / Cost of sales x 365
3
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What does Trade Receivables Days show
Measures how long customers take to pay
4
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Trade Receivables Days Formula
Trade receivables / Credit sales revenue x 365
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What is trade payables days
Shows how long the business takes to pay suppliers
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Trade Payables formula
Trade payables / Credit Payables x 365
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What does the sales revenue to capital employed ratio show
Indicates how effectively assets generate revenue
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Sales Revenue to Capital employed ratio
Sales revenue / capital employed
Note 
Flashcards (121)