These ratios measure the ability of a business to manage its assets and liabilities efficiently

Asset Turnover

Measures how efficiently a business uses its non-current assets to generate sales revenue. The higher the ratio the better.

Stock Turnover

Measures how quickly the stock is sold.

For a business to work out how many days it takes to sell its stock they would multiply their answer by 365

Debtor Days

This ratio measures how quickly debts are paid back to a business

Creditor days

This ratio measures how quickly a business pays its suppliers back