Glossary: Efficiency ratios

IB Business Management: Glossary: Efficiency ratios

Creditor days ratioThe efficiency ratio that measures the average number of days an organization takes to repay its creditors (suppliers who the business has bought products from using trade credit, so have yet to pay for these).Debtor days ratioThe efficiency ratio that measures the average number of days an organization takes to collect debts from its customers (as they have bought goods and services on trade credit...


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