Ratios

reynolds30
reynolds30 Registered Posts: 2 New contributor 🐸
I am in the process of creating some new ratios for our management reports and I can't for the life of me remember how to do debtors, creditor and stock days.

I have actually dug out my old BPP unit 11 book and still can't work it our from the figures in my accounts.

Can anyone supply an idiot guide for me, as my brain is old and frazzled.

Thanks

Comments

  • welshboy
    welshboy Registered Posts: 82 Regular contributor ⭐
    Hi,

    If this is for the calculation of Receivable Collection days and Trade payable payment period the calculations are

    Trade Payable x 365
    Purchases

    For Trade receivables

    Trade Receivables x 365
    Revenue

    Inventories

    Inventories x 365
    Cost of sales

    Hope this helps

    Regards

    Matt:thumbup1:
  • reynolds30
    reynolds30 Registered Posts: 2 New contributor 🐸
    Was that in Welsh or English????.....lol
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