Measurinh Efficiency Flashcards by evie rotheram

Q

Trade receivable days equation

A

(Trade receivables/credit sales) x 365

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Q

Trade payable days equation

A

(Trade payables/credit purchases) x 365

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Q

Average inventory equation

A

(Opening inventory + closing inventory)/2

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Q

Inventory turnover equation

A

(Average inventory/costs of sales) x 365

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