Business A-Level
efficiency ratios
What efficiency ratios means in Business A-Level, as defined for AQA.
Definition of efficiency ratios
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Reference: AQA
The efficiency measures are in days or in times per year: payables days, receivables days, and inventory turnover, which is cost of sales divided by average inventory.
Topics that use efficiency ratios
- Analysing the existing internal position of a business to assess strengths and weaknesses: financial ratio analysis (AQA A-Level)
Related terms
Using efficiency ratios in the exam
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