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Ratio Analysis - Coggle Diagram
Ratio Analysis
Efficiency Ratios
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Stock turnover
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higher number of times, lower number of days
Debtor days
measures the number of days it takes a business, on average, to collect money from its debtors.
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Creditor days
measures the number of days it takes, on average, for a business to pay its trade creditors
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Liquidity Ratios
Current Ratio
deals with a firm's liquid assets and short-term liabilities, i.e. its working capital
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Acid test ratio
similar to the current ratio except it ignores stock when measuring the short-term liquidity of a business
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