Financial efficiency ratios - numerical questions
The following data has been extracted from the accounts of a company.
|Net capital employed||2,000||2,200||2,000||2,500||2,700|
|Cost of sales||6,000||6,500||7,000||5,500||6,000|
- Calculate the asset turnover ratio, the stock turnover ratio, and debtor's days for the company over the five year period.
- Analyse the results and comment on your findings.
The following information is available for the last two years.
|For year ended 31 March 2010||For year ended 31 March 2011|
|As at 31 March 2010||As at 31 March 2011|
|Balance at bank||8,000||4,000|
- Calculate both the debtors' collection period and the creditors' payment period for each of the two years. State the formulae used.
- Calculate the acid test ratio for each of the two years. State the formulae used.