Efficiency Ratios Explained | Trade Receivable Day, Trade Payable Days, and Inventory Turnover.
Efficiency ratios are used to measure how efficiently a business uses its current assets and its current liabilities.
The three key efficiency ratios used by businesses are trade receivable days, trade payable days, and Inventory turnover.
Watch this video to see what each one of these efficiency ratios means for a business and how they are calculated!
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