Working Capital & Operational Efficiency
How quickly cash cycles through inventory, customers, and suppliers. 15 topics.
Inventory Turnover Ratio
How many times inventory is sold and replaced during a period.
Debtor Turnover Ratio
How many times receivables are collected during a period.
Creditor Turnover Ratio
How many times payables are settled during a period.
Receivable Days
The average number of days a credit sale stays uncollected.
Inventory Days
The average number of days stock is held.
Payable Days
The average number of days the company takes to pay suppliers.
Cash Conversion Cycle
The number of days cash is tied up in inventory and receivables, minus the days suppliers finance the business.
Asset Turnover Ratio
Revenue divided by assets. How many rupees of sales the asset base produces.
Fixed Asset Turnover Ratio
Revenue divided by net fixed assets.
Working Capital Turnover Ratio
Revenue divided by net working capital.
Capacity Utilization
Actual output divided by the output the plant was designed to produce, over the same period.
Order Book
The value of contracted orders that have not yet been recognised as revenue.
Order Inflow
The value of new orders won during the period.
Revenue Per Employee
Revenue divided by the number of employees.
Operating Efficiency
How well the company turns its assets, people, and costs into operating profit. A judgement, not one ratio.