Efficiency / Activity Ratio's Flashcards
(6 cards)
1
Q
Receivables Collection Period
A
Aged Receivables/credit sales X 365
2
Q
Payables payment period
A
Aged Payables/Purchases X 365
3
Q
Inventory Holding Period
A
Average inventory / COS X 365
4
Q
Operating Cycle
A
Inventory days + Receivable days - Payable days
5
Q
Asset turnover
A
Sales / capital employed
6
Q
Sales / Working capital
A
Sales / Working Capital