Page 389 - F2 Integrated Workbook STUDENT 2019
P. 389
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
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