Page 367 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx
P. 367
Analysis of financial performance and position
Efficiency ratios
Inventory holding period (inventory days)
Inventory
––––––––––––––––––– × 365 = n days
Cost of sales
Receivables collection period (receivable days)
Trade receivables
––––––––––––––––––––– × 365 = n days
Revenue
Payables payment period
Trade payables
–––––––––––––––––––– × 365 = n days
Cost of sales
359
