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Monday, August 15, 2011

How to Calculate Efficiency Ratio

Efficiency ratios measure how effectively the company manages its assets and liabilities. Some of the most commonly used efficiency ratios include Inventory Turnover Ratio, Days Sales Outstanding Ratio, Working Capital Turnover Ratio, etc. Learn how to calculate these ratios with the following example:

Calculate the relevant efficiency ratios, given the following information:
Accounts payables

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