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Key ratios - efficiency

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    Sarah P.
    ZM
    Sarah P.

    what is an inventory?

    Berthold K.
    NA
    Berthold K.

    What is the difference between Debtors turnover and Creditors turnover?

    Ibrahim Abiodun Y.
    NG
    Ibrahim Abiodun Y.

    Why is it difficult to define adequate working capital in a particular scenario,especially when we need to determine a working capital for a new business?

    Prematee M.
    TT
    Prematee M.

    1. Let's say the company benefits a 30day credit term from it's creditors but also, the company also allows it's debtors a 30day credit term to pay it's accounts 2. Stock turnover determination / month to date gross sales less your month to date cost of sales. Collections larger at month end facilitates creditors payment on a much more timely basis providing funds are used appropriately and for it's rightful use.

    Bikash G.
    NP
    Bikash G.

    write about the debtors turnover, stock turnover and creditors turnover?

    Naomi P.
    WS
    Naomi P.

    yeah it can measure the profit and loss of business

    Fehintola K.
    NG
    Fehintola K.

    The efficiency of a firm can only be known through the amount of credits it has to pay, the amount of debts that needs to be paid to its account and its average stock on a daily or yearly basis.

    Fehintola K.
    NG
    Fehintola K.

    At what interval should Creditors turnover be measured?

    Bashka H.
    SO
    Bashka H.

    This it will depend on the time frame for the credit to be offered

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