Introduction to Efficiency
Efficiency ratios are employed to try to assess how effectively the several resources of the business are managed. The subsequent ratios cover some of the more significant aspects of resource management:
Average inventories turnover period
Inventories frequently present a important investment for a business. For a number of types of business (for instance, manufacturers and definite retailers), inventories might account for a substantial proportion of the total assets held.
The average inventories turnover period ratio calculates the average period for which inventories are being held. The ratio is computed as follows:
Average inventories turnover period = (Average inventories held/Cost of sales) x 365
The average inventories for the period can be measured like a simple average of the opening and closing inventories levels for the year. Though, in the case of a extremely seasonal business, in which inventories levels may change significantly over the year, a monthly average might be more suitable, should this information be available.
Average settlement period for trade receivables
Selling on credit is the standard for most businesses, apart from for retailers. Trade receivables are an essential evil. A business will logically be considered with the amount of funds tied up in trade receivables and attempt to maintain this to a minimum. The speed of payment can have an important influence on the cash flow of business. The average settlement period for trade receivables ratio computes how long, on average, credit customers take to pay the amounts which they be indebted to the business.
The ratio is expressed follows:
Average settlement period for trade receivables = (average trade receivables/Credit sales revenue) x 365
Average settlement period for trade payables
The average settlement period for trade payables ratio computes how long, on average, the business consider to pay those who contain supplied goods and services on credit.
The ratio is expressed as follows:
Average settlement period for trade payables = (Average trade payables/Credit purchases) x 365
Sales revenue to capital employed
The sales revenue to capital employed ratio (or net asset turnover ratio) inspects how efficiently the assets of the business are being employed to produce sales revenue.
It is measured as follows:
sales revenue to capital employed ratio = (Sales revenue)/(Share capital + Reserves + Non current liabilities)
Sales revenue per employee
The sales revenue per employee ratio relates sales revenue produced to a specific business resource, i.e. labour. It gives a measure of the productivity of the workforce.
The ratio is expressed as follow:
Sales revenue per employee = (sales revenue)/(Number of employees)
Latest technology based Financial Accounting Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Efficiency homework help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Efficiency, project ideas and tutorials. We provide email based Efficiency homework help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Efficiency. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Financial Accounting homework help and assignment help services. They use their experience, as they have solved thousands of the financial accounting assignments, which may help you to solve your complex issues of Efficiency. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
tutorsglobe.com nitrogen fixation in non-legumes assignment help-homework help by online non-biological fixation tutors
tutorsglobe.com production function assignment help-homework help by online meaning of production tutors
www.tutorsglobe.com offers Area of Operation Budget Classification homework help, assignment help, case study, writing homework help, online tutoring assistance by accounting tutors.
www.tutorsglobe.com offers Object oriented analysis Process homework help, assignment help, case study, writing homework help, online tutoring assistance by computer science tutors.
tutorsglobe.com significance of double fertilization assignment help-homework help by online double fertilization tutors
www.tutorsglobe.com offers science homework help, science assignment help, online tutoring, projects help, writing homework/assignments, for k-12 science, college science, academic level science and post graduate level science homework.
Phase Transition tutorial all along with the key concepts of Phases of Matter, Phase Diagram, Co-exist Phases, Latent Heat, during Phase Transition, Kinds of Phase Transition, Lambda phase transition, Gibbs Function during Phase Transition, Clapeyron's Equation
Theory and lecture notes of Recovery Management all along with the key concepts of Model of Errors, Model of Storage Errors, page transfer, Model of Data Communications Errors. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Recovery Management.
gravitation and extended bodies objects tutorial all along with the key concepts of Gravitational Potential Energy, Escape Speed, Variation of g with Height and Depth, Variation of g with Latitude, Fundamental Forces in Nature
www.tutorsglobe.com offers Master Budget homework help, assignment help, case study, writing homework help, online tutoring assistance by accounting tutors.
Theory and lecture notes of Matlab Programs all along with the key concepts of matlab programs, Function Programs, Script Programs, Program Comments. Tutorsglobe offers homework help, assignment help and tutor’s assistance on matlab programs.
Theory and lecture notes of Production Cost in the Long-Run all along with the key concepts of Envelope Curve, LRMC Curve, Returns to Scale and LRAC Curve, Economies of Scope, Economies of Experience. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Production Cost in the Long-Run.
tutorsglobe.com immune system disorders assignment help-homework help by online immunology tutors
Essentials of a good costing system - Costing system that is adopted in any organization should be appropriate to its nature and size of the business and its information requirements.
Controlling the costs, already pre-determined on the basis of assumption of reasonable level of efficiency taking the past, present and future into account is the main focus of cost control.
1951807
Questions Asked
3689
Tutors
1446916
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!