efficiency

• Efficiency: refers to the company’s ability to be efficient in its

  operations
• Efficiency: measures the ability of the company to generate sales from

  the utilization of its assets, as a whole or individually
• Assets Turnover Ratio: Known as the total asset turnover ratio, it Measures the peso value of sales generated for every peso of

  the company’s assets
• Assets Turnover Ratio: Measures the efficiency with which a company uses its assets

  to produce sales
• Fixed Assets Turnover Ratio: Indicator of the efficiency of fixed assets in generating sales
• Inventory Turnover Ratio: Indicator of how fast the company can sell inventory
• Inventory Turnover Ratio: Number of times a company has sold and replenished its

  inventory over a specific amount of time
• Account Receivable Turnover Ratio: Measure the number of times the company was able to collect

  on its average accounts receivable during the year
• Accounts Payable Turnover Ratio: Measures how quickly a business makes payments to

  creditors and suppliers that extend lines of credit
• Accounts Payable Turnover Ratio: Shows how many times a company pay off its accounts

  payable during a period
• Cash Conversion Cycle (CCC): Shows the amount of time it takes a company to convert its

  investments in inventory to cash