Working Capital Efficiency Ratios

Measuring Operational Efficiency

Working Capital Efficiency Ratios

Efficiency ratios, also known as activity ratios, are used by analysts to measure the performance of a company’s short-term or current performance. All these ratios use numbers in a company’s current assets or current liabilities, quantifying the operations of the business.

Key Ratios

  • Inventory Turnover
  • Receivables Collection Period
  • Payables Payment Period

Accounts Payable Turnover Ratio Formula & Calculation Guide

Learn the accounts payable turnover formula with step-by-step calculation. Understand what AP turnover reveals about cash management and supplier relationships.

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