Loading
Precedente Previous slide Next slide Successivo
New course

Questo corso è stato rivisto!

Per un'esperienza di apprendimento più piacevole, ti consigliamo di studiare la versione ripubblicata di questo corso per cellulari.

Portatemi al corso rivisto.

- or -

Continue studying this course

Efficienza Ratios

  • Note di Apprendimento
  • Revisione degli argomenti
    Markettia C.
    US
    Markettia C.

    Hello

    Tashika B.
    US
    Tashika B.

    no questions for this diagram.

    BabaJide Martins F.
    TR
    BabaJide Martins F.

    Debtors turnover : credit sales/average debtors •credit sales •extension of credit terms offered to potential credit customers •offering of credit to a greater range of potential customers •debtors

    Hermina S.
    LC
    Hermina S.

    Efficiency ratio is the method used to measure how well a company manages its income and expenses.

    Morne V.
    ZA
    Morne V.

    Efficiency Ratios are Ratios that are typically used to analyze how well a company uses its assets and liabilities internally

    Sunday O.
    NG
    Sunday O.

    Efficiency ratios

    Odongo M.
    UG
    Odongo M.

    Accounting -> Topics -> Understanding and using accounting information -> Efficiency ratios Efficiency ratios Debtors turnover (credit sales/average debtors) credit sales extension of credit terms offered to potential credit customers offering of credit to a greater range of potential customers debtors The reduction of average debtors will also improve this ratio: discount offered to debtors reduction in credit offered incentives to buy for cash charging of interest (must be a term of the contract) more careful selection of credit customers refusal of further credit until payment factoring of debtors more frequent invoicing Stock turnover (cost of goods sold/average inventory) The cost of sales will improve with greater sales. This is favourable to the business. On the other hand a business may face an increase in cost of sales, with increased unit costs and be unable to increase selling price accordingly. This would be unfavourable to the business. Stock carrying of less stock - this is supported by strategies such as 'just in time'. Stock is bought to meet immediate needs and minimal stock is carried by the business immediate sale/disposal of obsolete or slow moving lines monitoring of stock levels and the turnover of individual lines Creditors turnover (Credit purchases/average creditors) The terms offered by creditors must be noted when measuring the success of a business in dealing with this ratio. If creditors offer 30 days and the ratio is below 30 days this would indicate that the business is taking advantage of discounts and maintaining a happy relationship with creditors. By taking longer to pay than the terms offered means that the business is: jeopardising future supplies influencing the quality of service, such as being informed about new products and so on reducing discounts received

    Manish K.
    NP
    Manish K.

    Information is clearly given about efficiency ratio. No confusing at all.

    Adil N.
    MA
    Adil N.

    What is jeopardizing future supplies?

    Gloria N.
    AE
    Gloria N.

    done

Notification

You have received a new notification

Click here to view them all