Efficiency Ratios

Accounts Receivable Turnover Ratio: Measure of Collection Efficiency
The Accounts Receivable Turnover Ratio evaluates how efficiently a company collects revenue from its customers by comparing net credit sales to average accounts receivable.
Days' Sales in Inventory: Evaluating Inventory Efficiency
Days' Sales in Inventory (DSI) is a key financial metric used to measure the average number of days it takes for a company to sell its inventory. This article delves into its significance, calculation methods, implications, and related financial terms.
Inventory Turnover: Measure of Stock Efficiency
Inventory Turnover is a crucial ratio that measures the efficiency of inventory management by calculating the number of times stock is utilized or sold annually.
Average Age of Inventory: Calculation, Analysis, and Importance
A comprehensive overview of the average age of inventory, including its definition, calculation methods, analytical significance, and the impact on business operations.

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