7.2 profitability Flashcards by Natalie Worsley | Brainscape

Q

How do you work out inventory turnover?

A

cost of sales / stock

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Q

How do you work out receivable days?

A

trade receivables / revenue x 365

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Q

How do you work out payable days?

A

trade payables / cost of sales x 365

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Q

What are receivable days?

A

How long customers take to pay the business

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Q

What are payable days?

A

How long the business takes to pay the suppliers

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