Activity Ratios

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What does Inventory (stock) turnover look at?
The number of times a year a business sells and replaces stock
1 of 5
What do debtor (receivable) days look at?
Shows how long it takes for businesses to collect debts
2 of 5
Creditor (payable) days?
Show how long it takes from businesses to pay for supplier purchase on credit and expressed as a number of days
3 of 5
Asset turnover
Show how many £ worth of sales a business can make from its asset base (sweating assets)
4 of 5
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5 of 5

Other cards in this set

Card 2

Front

What do debtor (receivable) days look at?

Back

Shows how long it takes for businesses to collect debts

Card 3

Front

Creditor (payable) days?

Back

Preview of the front of card 3

Card 4

Front

Asset turnover

Back

Preview of the front of card 4

Card 5

Front

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Back

Preview of the front of card 5

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